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I received a letter that I’m in default with a student loan. What can I do to regain financial aid eligibility?

April 26, 2017Default eligibility financial aid I’m letter received regain student loan

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I received a letter that I’m in default with a student loan. What can I do to regain financial aid eligibility?

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A student loan is in default if the student has not made payments for 270 days. One primary consequence of a defaulted student loan is loss of eligibility for future student loans or any type of state or federal student aid. The default is reported to all national credit bureaus which generally eliminates the option of credit-based alternative loans. If a student is having trouble making student loan payments they should contact their loan servicer immediately. It is possible that the student may qualify for one of the types of payment relief, deferments and forbearances.