When you default on a student loan, there are few options available to get you out of trouble. However, it may be possible to talk to a lender about refinancing the loan. This may help you lower your monthly payment and therefore restore your credit history. Not all lenders will be willing to do this so you best bet is to start with the lender who currently holds your student loan. They have the most to lose if you don't make payments so they may be willing to work with you on alternative options to put you in a position to be able to make the monthly payments.
|Jennifer Mathes, Ph.D.|