Pay a new monthly payment based on 15% of your discretionary income. All loans in collections are in default, but not all loans in default are in collections. After your 9th payment, the default status will be removed, and your loans will be back in good standing. Click here to learn more and get the free map – before your next payment date!) You have to make 9 monthly payments within 9 months. So, getting out of private student loan default is very different compared to federal loans. After a number of monthly, on-time payments, your loan will be out of default. Loan Consolidation Another option for getting out of default is loan consolidation, which involves obtaining a new loan to pay off the defaulted federal student loan. The best way to get out of default is not to get … If you are able to get out of default through rehabilitating or consolidating your loans, you will once again be eligible for the more flexible pre-default repayment options as well as deferments.. If you have private student loans, you can’t qualify for loan rehabilitation or … Not making payments on your student loans was what got you into student loan default, so it makes sense that getting out of default requires some amount of money being paid towards your balance. I was just talking to debt coach Damon Day about your situation, he had an interesting observation. Your private student loan may default if you miss just one or two payments -- or automatically, if you file bankruptcy or default on another loan. The rehabilitation plan for default allows you make payments based on income. Your student loans most likely ended up in default because you did not make payments for a long period of time–typically 270-360 days. Get on a Default Rehabilitation Plan ASAP There is an income-driven plan for paying off federal student loans in default. Your second option on how to deal with this situation is based on logic and the facts. One great way to get out of default is to consolidate your federal student loans to a Direct Consolidation Loan. With federal student loans there are two realistic ways to get your student loans out of default and a third option that’s out of reach for most borrowers. The first thing you need to do is re-track down your student loans. Many … How to Use the Federal Student Loan Rehabiliation Program to Get Your Loans Back on Track! Getting your student loans out of default will require the borrower to be proactive and take action to get back into good standing. Check out Student Loan Hero’s full guide on student loan default and how to … Another way to get out of default on a federal student loan is to consolidate it. Loan rehabilitation allows you to get out of default by making 9 monthly payments within 10 months. Combining your student loans through consolidation is a faster and cheaper way to get out of default on federal student loans than rehabilitation. Student loan rehabilitation is a one-shot opportunity for borrowers to get federal student loans out of default. You should also understand that there may not be a "quick fix" in either case. Each student loan servicer has a process for getting student loans out of default. Private student loan lenders typically have none of the second chance programs to get your loan out of default like federal student loans do. Getting out of default — or avoiding a default student loan altogether is key. Income-Driven Repayment Plan Forgiveness For federal student loans, the standard repayment period is 10 years. Consolidation can be a good option for getting out of default, as long as you’re able to commit to the repayment plans it requires. Getting Your Private Student Loans Out of Default. Loan rehabilitation can be tricky, but with proper counseling and representation, this will be a huge benefit to those in default.”. Private student loans are not eligible for rehabilitation. 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