when is are we officially dating out - Consolidating defaulted perkins loan

A federal student loan is in default if the borrower has failed to make any payments for at least 270 days, or 330 days if payments are not due monthly.

However, being in default on other types of loans, including auto loans and private student loans, does not affect Pell Grant eligibility, because the federal government does not run a credit check on applicants.

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These are agreements between borrowers and lenders that can erase defaults from the borrowers’ records as long as they stick to a strict repayment plan, typically for 10 consecutive months.

Rehabilitating loans clears a black mark from borrowers’ financial histories, repairing credit scores and restoring their ability to borrow in the future.

It’s important to remember that when you default on a student loan, you are no longer eligible for loan modification, deferment, forbearance, repayment plans, forgiveness or consolidation until you rehabilitate your loan.

And there are broader consequences, for instance you might be denied a car loan or a credit card, and if you succeed in getting a loan, the interest rate could be extremely high.

About 44 million people carry more than $1.4 trillion in federal student loan debt in 2017, and 4.2 million of them were in default.

During 2016, 1.1 million borrowers stopped making payments. According to a Consumer Federation of America analysis of federal student debt data, defaults increased 14% from 2015 to 2016.

The Pell Grant is the foundation for all other types of government financial aid for students.

As of 2011, applicants who have significant financial need as demonstrated by the FAFSA receive an annual Pell Grant of up to ,550, which does not need to be repaid.

If your loan enters a rehabilitation plan, your credit history will be repaired.

Your eligibility for loan deferment, forbearance and forgiveness will also be restored.

In both cases, contact the lender to enter the rehabilitation process.

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