I am in search of someone that can give me some advice about financial aid. I completed my online FAFSA application. It says I am in default on my student loans. Now I am guilty of being in default at one time, but I have worked very hard to rehabilitate my loans. My loans were rehabilitated as of May 2015. I am unsure what to do now. I was planning to return to school in the Fall, but at this point I am lost. If anyone can help I would appreciate it.
You need to make 6 months of on-time payments with your lender for your school to clear the default. Even further, you officially have to make 9 monthly on-time payments, but the school should be able to issue aid after 6 months, and you have to continue to fulfill the 9 month plan. How long have you been making the required payments?
See this: https://studentaid.ed.gov/sa/repay-loans/default/get-out . Once you have made the minimum number of on-time payments, you will be able to get a letter from the Department of Education that states that you have regained eligibility for Title IV aid. You’ll need to provide that letter to your financial aid office.
I have worked with a number of students who had to get out of default in order to come to school. If your loans are in default, it does take a number of months to become eligible for aid. You’ll need to figure out how to pay for your first semester without federal aid if you just started repaying the loans in May - or you could postpone enrollment until 2nd semester, when you will have regained eligibility (assuming you continue to make on-time payments). Some borrowers are eligible to consolidate to regain eligibility, but this requires at least 3 on-time payments before you can consolidate … and it adds some hefty fees into the mix.
If you need financial aid then I think it’s better to ask financial expert. I am not one of them but I can recommend you to read this http://www.basicfinancialtips.com/student-loans-bad-credit-without-cosigner/ . The most important, don’t panic.
Kelsmom is a financial aid officer at a college. Her advice above is spot on.
I would not advocate that a student who is in default borrow a private student loan from a company that caters to those with bad credit and no cosigner. IMO, this just compounds a bad situation.
What do you do if you were in default, but didnt realize it and another school didnt said my fafsa went through and so i started 4 in a months later they said my loan was in default and that i would have to 1000 to remain. This was going on from may to aug i asked them 3 or 4 times if they were sure i had financial aide becaise I had been getting email saying they were in default. Well now its october and they contacted me and said that I would come in and do some paper work to get the financial aide since now im out of default. It just seems strange I would of never had started if I knew I couldnt fet financial aide. And also is it legal for a school to claim financial aide payment for may through aug in October?
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