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the only thing you guys missed is that in consolidating you do capitalize on interest and principal making a new balance which would then be the principal and interest put together.
So how much did Sallie Mae pay you to put this video online. You forgot to mention that with rehabiitation the borrower has to agree to the higher interest and fees that the lender added to the original loan thus getting the borrower into more serious problems. Eitherway Sallie Mae makes out.
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Better to pay what you contractually owe, and have better credit. Better yet to never let your loans go into default to begin with.