Welcome to the BillTutor.com's "College Bulletin" !! Here at BillTutor.com our primary mission is to provide straight-forward advice to our college student demographic in regards to the quesions they submit that pertain to the area of higher education. To this extent, this part of our virtual campus will feature a question previously submitted from a college student and BillTutor.com's answer to that question.
Do you have a college question that you would like to have featured on our "College Bulletin"?? Fill out the submission form below and have your question featured here!
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STUDENT INQUIRY:
Please assist me in the steps needed to apply for FAFSA if my current loans were placed in default.
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BillTutor.com's Response:
If your current loans were placed in default this would mean that you have failed to make payment for at least 270 days. This means that you are not allowed to obtain federal student loans and your account is in default and will mostly likely prevent you from obtaining private alternative credit based loans as well due to a 'default' would be reported to national credit agencies as well.
It is advised that you initiate contact with your billing agency, let them know of your circumstance, discuss options, try to see if you were placed in default by error, see if you had deferment or forbearance in place at the time of missed payments, ask for a statement of all payments made, ask for confirmation of all deferments and forbearances with start and end dates that have been applied to the loan, if any documentation provided is incorrect provide copy of correct information, and always stay in touch with the lender or collection agency.
If the above steps are unable to default the default status from your account you will need to pay the loan in full, make 12 consecutive payments called loan rehabilitation, or you can make 3 voluntary consecutive payments and consolidate the loans to rid yourself of this 'default' status. Once you have completed one of these then your status will be updated and national credit agencies notified allowing you to once again file for more federal student loans and get credit based alternative loans.
Do you have a college question that you would like to have featured on our "College Bulletin"?? Fill out the submission form below and have your question featured here!
____________________________________________________________________________________________________________________________________
STUDENT INQUIRY:
Please assist me in the steps needed to apply for FAFSA if my current loans were placed in default.
_____________________________________________________________________________________________________________________________________
BillTutor.com's Response:
If your current loans were placed in default this would mean that you have failed to make payment for at least 270 days. This means that you are not allowed to obtain federal student loans and your account is in default and will mostly likely prevent you from obtaining private alternative credit based loans as well due to a 'default' would be reported to national credit agencies as well.
It is advised that you initiate contact with your billing agency, let them know of your circumstance, discuss options, try to see if you were placed in default by error, see if you had deferment or forbearance in place at the time of missed payments, ask for a statement of all payments made, ask for confirmation of all deferments and forbearances with start and end dates that have been applied to the loan, if any documentation provided is incorrect provide copy of correct information, and always stay in touch with the lender or collection agency.
If the above steps are unable to default the default status from your account you will need to pay the loan in full, make 12 consecutive payments called loan rehabilitation, or you can make 3 voluntary consecutive payments and consolidate the loans to rid yourself of this 'default' status. Once you have completed one of these then your status will be updated and national credit agencies notified allowing you to once again file for more federal student loans and get credit based alternative loans.
