After defaulting on a student loan, you are not eligible to receive any additional federal funds unless you rehabilitate the bad loan. Defaulting on a student loan is never a good thing, especially considering what it does to your credit history. Through the rehabilitation process you make on-time payments on the bad loan. The particular type of loan issued will determine how long the rehabiliation process takes, but it could be for a period of between 9 and 12 months. After rehabilitating the process, your credit history is updated to reflect the current payment history and you could be eligible once again to receive additional federal funds.
|Jennifer Mathes, Ph.D.|