how do you re-up a defaulted student loan?

[grasswire]

I know someone whose student loans just went into default this year (turned over to collection) but she wants to go back to school summer term. What does she have to do to straighten out the loan and be able to borrow again? Any input is much appreciated.

[philosophie_en_rose]

1. Yikes.

I suggest she speak with a financial aid counselor at her school. That person should know the exact steps she needs to take.

She may want to contact her lender, as well. Sometimes, they'll renegotiate terms.

To be honest, I'm not sure she could get additional private loans. She may qualify for federal loans, but it's hard to know without her details.

Her best bet is to contact her school first.

[grannylib]

2. Just got done with this process with my hubby; here's how it worked for us

We had to make 9 scheduled payments with the collection people to get out of default; now the loan is considered rehabilitated and it's going back to the original lender with whom we will now be negotiating the monthly payment plan.
I don't think she'll be able to borrow until she's at the rehabilitation point, and it takes a while, unless she's in a position to make those 9 payments in real short order...

That's my experience anyway...I wish her luck!

[grasswire]

3. hmmm..

I wonder if the payments can be at short intervals so that she could make it by summer term, or if they must be stretched out.

Thanks. I knew there was a process for rehabilitation, but had forgotten what it was called.

:-)