Payment Arrangements or Paid Off?

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Payment Arrangements or Paid Off?

Postby 40nluvinit » Fri May 17, 2013 10:36 am

I am in default of 3,100 and I want to go back to school. If I make payment arrangements will that allow me to get another loan to go back to school and finish or does the loan in default have to be paid off in it's entirety first?
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Re: Payment Arrangements or Paid Off?

Postby Aid Whiz » Tue May 21, 2013 8:08 am

There are 3 ways you can potentially get out of default and regain eligibility for federal loans. They are:

- Full repayment
- Loan rehabilitation
- Loan consolidation

Rehabilitation and consolidation are the two options do not require that the loan be paid in full to regain eligibility.

For more information on these, see: http://studentaid.ed.gov/repay-loans/default/get-out
Student Advocate, The Student Loan Network

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