Default Status

Alma Mater

Students who are in default on a federal educational loan are not eligible for Federal student aid funds. However, they can take the following actions to have their eligibility reinstated:

Satisfactory Repayment Options

A borrower may repay the defaulted loan in full or make satisfactory repayment arrangements, i.e. six consecutive, voluntary, on-time, and full monthly payments that are reasonable and affordable given the borrower’s financial situation.

Loan Rehabilitation

After the student makes more payments, the loan may be rehabilitated, that is, it will not be in default anymore, and the student will have all the normal loan benefits, such as deferments. A loan will not be rehabilitated until the borrower makes 12 consecutive, full, voluntary payments on time.


If a students is unsure which loan is in default, his or her financial aid officer can assist in identifying the loan.