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Will I be able to defer my federal and Private Student Loans?

Will I still be able to defer my student loans after defaulting?

  • My student loans just went into default on December 16, but I was not even aware that I was in repayment. I am still in school but have not been able to take classes because I haven't been able to afford them for the duration of this past year. I was under the impression that as long as you were still enrolled in your school your payment was still deferred until after the 6 months. Apparently, that is not the case. Now I transfered over to a new school and going through the financial aid process and got an e-mail that since my student loans are in default, I cannot get any more aid until I fix it. I did not get any bills or calls or anything telling me I was in repayment, so now I'm not sure what to do. I can't pay anything out of pocket on my loans yet to be able to get out of default by that route, but would I be able to talk to the lender and get out of default so I can get my financial aid reinstated somehow? I haven't even been in default a month.. Please help!

  • Answer:

    Since you were not taking classes you were not "enrolled". Just because you hadn't finished your degree yet, but were planning to doesn't qualify you for in-school deferment. You dropped below half time so you're loans went into repayment. You probably did get your 6 month grace period though. You can still get more financial aid without repaying the loans completely. You'll need to talk to the lender to find out what you need to do to bring yourself out of default. Most likely you'll need to make a series of payments on time for X number of months.

Diana Gonzalez at Yahoo! Answers Visit the source

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You have to be taking classes. You will not get any Federal aid until your loans are out of default. "If you are in default on your loan, you are not eligible for a deferment or forbearance." "When you graduate, drop below half time, or withdraw from your academic program, you will receive a six-month grace period for your Direct Subsidized and Unsubsidized Loans. Your grace period begins the day after you stop attending school on at least a half-time basis. Once your grace period ends, you must begin repaying your loan(s)."

Angela

its not just being enrolled that keeps your loans in deferment, you have to actually ATTEND CLASS> Once you go into default, you can't get any further types of aid (loans and grants) and if you want to keep from getting your classes dropped (for non payment) again you need to pay them in cash asap. Getting out of default takes 6 months (sometimes more) of VOLUNTARY payments (not wage garnishments) before you are eligible to aid again. Talking to the lender isn't going to help. If you have a job, you need to be aware they will start garnishing your wages soon. Student loan default isn't something to mess with. Once you go into default, a simple relatively SMALL loan of a few thousand dollars will quickly balloon into ten grand or more of debt that will take you forever to pay off. not getting any bills or calls does not make a difference. Being enrolled does not make a difference. You have to actually ATTEND to get the deferment.

just not that

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