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Default student loan, Going back to school- want federal aid





Sub: Default student loan, Going back to school- want federal aid
Thu, 06/09/2012 19:29

I have decided to join my school again and I am sure that my application will be approved. The problem lies with funds. My credit is not very good. I've lost my last job very recently. Moreover I owe some default student loans. When I contacted a student loan servicing company, they told me that I won't be able to get the federal aid any more. Anyone else here having similar problem? Can anybody suggest me someway so that I can enter my school by next academic session?



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Sub: #1 Have you consolidated before??? If you have never consolidated Thu, 09/06/2012 - 19:29



Have you consolidated before??? If you have never consolidated before, it is the only way to go. Once your loans are out of default, you regain your financial aid eligibility.


If you have consolidated before, you cannot consolidate a defaulted consolidation.....just googled it and from what I read, you can only consolidate a defaulted consolidation loan if you have an additional loan to add to it.
From the Direct Loan website....
borrowers cannot consolidate defaulted loans under these conditions:
  • If a judgment has been issued against a defaulted loan, it cannot be included in the consolidation unless the judgment order has been vacated (dismissed).
  • If they are trying to consolidate defaulted Direct Consolidation Loans and do not include at least one additional eligible loan in the consolidation.



Rehab is not an option either...you can only rehab once.

How to Deal with Illegal Loans..OhioGal's Primer
http://www.debtconsolidationcare.com...allenders.html
PDL's are ILLEGAL in the following states...
AR, AZ, CT, GA, ME, MD, MA, NJ, NY, NC, PA, VT AND DC
OH AND NH have very restrictive low cost interest rate laws.

SOL for all states
http://www.debtconsolidationcare.com...imitation.html


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Sub: #2 defaulted, rehabilitated, defaulted again helpThu, 09/06/2012 - 19:00



I have defaulted 5 federal student loans twice. The first time, I made consecutive payments for a year and was able to rehabilitate my student loans. I defaulted once again. After a few years, I am a half time student again but as a result of being in default, I cannot apply for aid. Is loan consolidation my only option?

I've read that you can try to contact your lender, but that is that only recommended when you have private student loans?

I've done a little online research and found this: http://loanconsolidation.ed.gov

Is this the best option for federal student loan consolidation?

Once I consolidate, will I be able to re-apply and qualify for further federal aid?

How long after I consolidate the loans, can I re-apply for fed aid?


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Sub: #3 You can complete the FAFSA online but until the 6 payments are mMon, 09/06/2010 - 09:21



You can complete the FAFSA online but until the 6 payments are made you are ineligible, meaning you will be denied. Even after the 6 payments, you might need a financial aid letter from the CA.

Eligible in federal terms means you get them, ineligible means you don't.

FAFSA = Free Application for Federal Student Aid.

How to Deal with Illegal Loans..OhioGal's Primer
http://www.debtconsolidationcare.com...allenders.html
PDL's are ILLEGAL in the following states...
AR, AZ, CT, GA, ME, MD, MA, NJ, NY, NC, PA, VT AND DC
OH AND NH have very restrictive low cost interest rate laws.

SOL for all states
http://www.debtconsolidationcare.com...imitation.html


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Sub: #4 Soaplady, was that in response to my question? Yeah, I get thaMon, 09/06/2010 - 08:29



Soaplady, was that in response to my question? Yeah, I get that much - I just don't know how much "eligible" relates to actually getting the loan, or is it pretty much at that point as long as I need it, it will be there (ie, my financial conditions are worse off or equal to when I took out the original loans). And how is FAFSA related? Can I send in the FAFSA forms before my loans are out of default? Or will they just "well we can't offer you any other aid because..." I still have to talk to the financial aid office at the school (which I'll do after the holiday today) but it seems like they don't send you information on other grants and scholarships you might be eligable for until you send in the FAFSA form.


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Sub: #5 The collector handling your account should have been able to ansMon, 09/06/2010 - 02:01



The collector handling your account should have been able to answer this. You become eligible for financial aid after 6 consequitive payments...federal law. You must continue the rehab payments and not miss any until completed or the financial aid will be withdrawn.

How to Deal with Illegal Loans..OhioGal's Primer
http://www.debtconsolidationcare.com...allenders.html
PDL's are ILLEGAL in the following states...
AR, AZ, CT, GA, ME, MD, MA, NJ, NY, NC, PA, VT AND DC
OH AND NH have very restrictive low cost interest rate laws.

SOL for all states
http://www.debtconsolidationcare.com...imitation.html


Unregistered

Sub: #6 Great Topic! I saw this briefly touched on, but I'd like to hearSun, 09/05/2010 - 23:30



Great Topic! I saw this briefly touched on, but I'd like to hear something a little more solid. I just began the process of trying rehabilitate my defaulted student loan with the intention of going back to school next year. Now, once rehabilitated, you are "eligable" for new federal loans, but what are the chances you will get them? Also, can I apply for FAFSA or scholarships before the defaulted loan is considered rehabilitated (as I'd like to get started on my other financing options as soon as possible)?
Thanks!


Unregistered

Sub: #7 thanks i got them calling me today and informed them that I am aWed, 09/01/2010 - 10:42



thanks i got them calling me today and informed them that I am attending classes again. The Lenders want me to fax them a verification of enrollment form and to make sure that the College has me registered back on the national student clearinghouse data base .. but this did not excuse the past due amounts for the months of June and July .. thanks for the quick responses and comments


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Sub: #8 You should have called them again and asked for another as soon Wed, 09/01/2010 - 08:37



You should have called them again and asked for another as soon as you knew you could make your payment. You are eligible for up to 3 years of deferements. Plus they could have given a forebearance.

How to Deal with Illegal Loans..OhioGal's Primer
http://www.debtconsolidationcare.com...allenders.html
PDL's are ILLEGAL in the following states...
AR, AZ, CT, GA, ME, MD, MA, NJ, NY, NC, PA, VT AND DC
OH AND NH have very restrictive low cost interest rate laws.

SOL for all states
http://www.debtconsolidationcare.com...imitation.html


Unregistered

Sub: #9 Sorry, I didnt explain right, I did apply for deferment and theyWed, 09/01/2010 - 07:09



Sorry, I didnt explain right, I did apply for deferment and they gave me a year, the year was up 7 months ago and now I'm behind 3 months.

Thanks


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Debt Samaritan
Posts: 17094
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Sub: #10 you should have applied for a deferment or forebearance as soon Wed, 09/01/2010 - 06:42



you should have applied for a deferment or forebearance as soon as you knew you couldnt make your payment.

Call your lender...they maybe able to verify thru their database that you are back in school.

How to Deal with Illegal Loans..OhioGal's Primer
http://www.debtconsolidationcare.com...allenders.html
PDL's are ILLEGAL in the following states...
AR, AZ, CT, GA, ME, MD, MA, NJ, NY, NC, PA, VT AND DC
OH AND NH have very restrictive low cost interest rate laws.

SOL for all states
http://www.debtconsolidationcare.com...imitation.html


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