Repairing a Defaulted Student Loan
 

 

The first step to bring a loan into good standing is to contact the holder of your loan, explain your situation, and ask if you are eligible for the rehabilitation program. This program would require you to make payments again although you might be able to renegotiate the payment terms to lower your monthly payment. After you make payments for 6 to 12 consecutive months, the loan will be taken out of default and you will regain eligibility for additional financial aid and deferment.

 
 
To find the agency that holds your loan, look on your monthly repayment coupon.
Department of Education
(Student Financial Assistance)
 http://www.ed.gov/offices/OSFAP/DCS/



National Student Loan Data System 
 http://nslds.ed.gov/
Federal Student Aid Information
(800) 433-3243
United Student Aid Funds
(800) 331-2314
Sallie Mae (Student Loan Marketing Association)
 (800) 524-9100


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Cancellation of a Student Loan
 

 

A student loan can only be canceled as a result of death or total permanent disability. Currently, HIV/AIDS is considered a permanent disability. To prove that you have an AIDS diagnosis, you must have a note from a doctor explaining your medical condition. It is unclear how canceling past loans might affect your ability to get student loans in the future.

 


For more information contact
Department of Education
http://www.ed.gov
Or the guarantor of your loan


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