Private College Student Loan

Are defaulted private student loans sold back to the government?

A friend told me that they defaulted on their private loans and the government bought them, no longer making them private and easier to consolidate. Is that true?

Public Comments

1. I have not heard anything like this. If somebody defaults on a private loan it most likely will get sold to a collections company, possibly by the government. And once you default on a loan it is hard to consolidate it. Your friend should contact who ever holds the loan now and make the proper arrangements to get the loan out of a defaulted status. Then depending on their situation they can possibly defer the loan payments if they are not able to afford them because of a loss or reduction of job. good luck!