Q: I recently consolidated old federal student loans. The consolidation is official and completed tommorrow. How long does it take before the default status comes off your financial aid record and does the consolidation company remove it or does the loan guaranteur that the consolidation company bought it from?
A: Once the consolidation company pays the lender, the lender will then send a letter to you stating that they received the money and that you are no longer in default status. But all that depends on how fast each company moves. So it can take up to two or four weeks. And it will be the Loan Guarantor that will remove the default status.