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Getting Loans out of Default to Return to School? (Help)
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I am helping my partner (who is very confused and overwhelmed by this kind of thing) get their loans out of default so they can go back to school and get financial aid. You can't get financial aid if you have any loans in default.

For some odd reason they have a ton of loans but have not maxed out their Pell Grant eligibility - I don't know why they weren't receiving Pell instead of loans for some of these semesters. But that is neither here nor there. My main question is, is there any chance of rehabilitating these loans in time for them to attend school this coming semester and receive financial aid?

We already tried dealing with this a few years ago - we tried to consolidate all of their loans and get them in good standing. But the process was ridiculously complicated and not user friendly, and somehow only some, not all, of their loans made it into the consolidation. Part of this was my partner getting overwhelmed and frustrated and dropping the ball. Anyway, 8 loans are still in default and not consolidated. I thought that now would be a good time to work on this as the student loan deferments due to COVID would mean that they are all current - turns out this is not actually the case.

I went to the National Student Loan Data System page and saw that it said to go to https://myeddebt.ed.gov/ to resolve defaults, which I did. However that website is not functioning. When I click on "borrower" it says 404 or service not available. I guess I will wait and call on Monday. Does anyone know what we should say or do to get the loans in good standing as soon as possible? Should they even be listed as in default still, given that all loan interest and payments are supposed to be stalled right now?

Thank you!

Edited to add: Is the My ED Debt website not working because of sabotage/neglect from the current administration? Anyone know how politics affects this?

UPDATE: I was able to apply for consolidation through a different site - through the Student Aid site right than My Ed Debt. Chose a different servicer than last time. Last time we used Navient which has a lot of complaints, this time went with Great Lakes which is considered one of the better ones. Hopefully it works out. It says it takes 30-45 days to process, and the coming semester starts late January, so I'm going to call this week and see if there's anything we can do to expedite the process so my partner can go back to school this term and get aid. Welcome any tips for working with Great Lakes!

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4 years ago