I would like to enroll in a loan eligible program and college..
Class begins in February..
One of my past federal loans has defaulted according to NSLDS from 2015..
No action has been taken on the defaulted loan other than a few collection notices I recall receiving..
All other past federal loans are current..
How can I regain eligibility for lending with this one defaulted loan standing in my way?
The servicer confirmed before xmas that I was eligible for lending but somehow she must have not considered this default.. I am short on time as the enrollment process needs to start when the college reopens..
I was thinking about loan consolidation even before this loan became the front and center concern but that process can take more than a month to complete and probably wouldn't leave me eligible for lending until my defaulted loan is addressed..
What are my options to regain lending eligibility with regard to this defaulted loan?
I am not sure if this will work but I was researching student loan defenses to repayment.. I am planning on asking a question on the forum in a few minutes about defenses but I have read that...
If you complete an application for student loan defenses then all collection activity on such loans ceases while under review.. I am not sure if this temporarily changes the status of your defaulted loan but one would think lending eligibility might be immediately restored?
In the worst case scenario you could always borrow the money from someone to repay the defaulted loan and then pay that person back with the new disbursement..
Just make sure you absolutely confirm that repaying the loan in full will make you eligible for lending as quickly as you need it because otherwise the urgency lessens..
And if you choose to submit an application for borrower defense make sure your application has merit.. Do not submit a repayment defense for the sole purpose of restoring lending eligibility if even possible..