i have a student loan in defult can i go back too school?
I defaulted on my student loans and they were taking my taxes us. dept of education called me offered to set up what is called ICR ( income contingent repayment ) so they would stop taking my taxes and garnishing my wages, My question is can I go back to school while this is in icr status ? I did ask the lady on the phone but she didnt seem to sure in her answer I want to make sure before I do this. I was going to pay min payments for 6 months to get my loans out of default but with them garnishing it was impossible. she says it will take them out of default but what about school?
You have to get your loans out of the default status, which requires either that you consolidate your loans into a new loan, or that you set up a loan rehabilitation repayment plan and make all the required 12 on-time consecutive payments. Many lenders will allow you a letter of good standing to show your financial aid office once you have made 4-6 months worth of payments on time, which will open the door for additional financial aid and loans. Once the loan is rehabbed you get back all of your benefits such as in-school deferments.
Whether you go back to school or not, get the default resolved and your loans back in good standing. Rehabbing the loan can allow for your past credit default to be removed from your credit report, which is an enormous bonus to help you repair your credit.
