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Why aren’t loans consolidated with another individual eligible for repayment?

April 26, 2017consolidated eligible individual Loans repayment

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Why aren’t loans consolidated with another individual eligible for repayment?

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When a joint consolidation loan is entered into, both borrowers become jointly and severally liable for the repayment of the full amount of the loan. There is no statutory authority to allow one of the borrowers to assume the entire joint consolidation debt or for the borrowers to separate the joint consolidation loan into separate individual loans. Therefore, joint consolidation loans cannot become eligible for the Loan Repayment Programs.