How to Go Back to School With Defaulted Student Loans
"Defaulting on student loans can present an obstacle if you want to go back to school. Student loan default, which occurs after 270 days of missed payments on federal student loans, typically makes you ineligible for federal student aid. That means borrowers in default can’t access the grants, work-study programs and student loans that help make college affordable," U.S. News & World Report writes.
..."Defaulting on private student loans from a bank, credit union or other lender doesn’t make you ineligible for federal financial aid. You’ll still be able to submit the FAFSA and access federal grants, work-study and student loans for college or graduate school.
However, it may not be a good idea to take on more debt when you’re already behind on your student loan payments, and private loan default is still a difficult situation.
'Defaulting on private loans should be taken seriously, as they have more grave and immediate consequences,” says Karen McCarthy, vice president of public policy and federal relations with the National Association of Student Financial Aid Administrators. “For borrowers dealing with private student loans in default, they should reach out to their private student loan servicer about repayment options.'"
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Publication Date: 9/11/2023
