Student loan default- which optiom is best?

[Anonymous]

I have roughly about $9,000 in student loan debt from back in 2007 to 2008. I'd like to get my student loans on track so because within the next year and a half or so will be applying for a mortgage loan. So I'd like to know from the student loan gurus which option would be best for me 

Rehab,  consolidation, income based repayment plan, 10 yr PSLF Public Service Loan Forgiveness (Ive worked in the public service sector for 6 yrs)???

My low income and family size qualifies me for an ibr as low as $0!!! I also work in public service and could get them forgiven after 10 years possibly

Im totally clueless on which would be best. My primary goal is to get them out of default with an affordable pymt.

Thnx 😘

[SCF]

Go to the National Student Loan Data System and see who currently holds your loan(s).  Contact them and tell them you would like to rehabilitate the loan(s).  They will ask for the same information as you would provide to apply for IBR, and set your rehab payment up based on this.  I don't think your rehab payments can be $0, but I have seen people post here about payments as low as $5.

Once you complete your rehab in 9-10 months (it requires 9 on-time payments, plus some processing time for a new servicer to pick up your loan), you will be back in good standing with a regular servicer.  You'll be able to contact that servicer and request any of the payment plans that you are eligible for, including income-driven repayment plans.  If you want to pursue Public Service Loan Forgiveness, you'll need to make 10 years of on-time payments after your loans leave rehab while you are employed full-time in a public service position.  You are only working toward forgiveness in the months where you are both employed and making payments (even if they are $0 payments and all you do is successfully renew your income-driven payment plan each year).

[Anonymous]

Thanks for such a quick response! Back in 2011 I signed paperwork (not sure if it was a rehab or consolidation) but it was one or the other. I know that rehab is only offered once, so if it was a rehab and Im no longer eligible what should be my back up plan?? 

Again I appreciate it. I'vebeen hesitant on calling bc I wanted to have the advice of rhe community first so that I enter into the right agreement. 

Thanks!! 

[Sbrooks1]

Keep in mind when aping for mortgage new FHA GL will not take IBR payments and figure in 1% payment per month in DTI

[SCF]

If you already tried to rehab your loans once and weren't succesful, you'll have to use consolidation to bring your loans out of default.  Consolidation doesn't have the benefits to your credit report, but it does still get your loans back into a positive status and give you access to the different repayment options, so it's the next best thing.