This decision affectsapproximately 5.3 million borrowerswho were in default before the pause.
That amounts to around 5.3 million people, according to the Education Department.
To determine if you’re affected, log into your account atstudentaid.gov.
Repay the loans in full
I know, I know.
Still, it is the quickest and most effective option to deal with your debt.
Consolidation
This process combines and simplifies your existing federal student loans into a newDirect Consolidation Loan.
you could enter tostudentaid.govto jump into the online direct consolidation loan system.
Loan rehabilitation
With consolidation, the fact that you were once in default stays on your credit report.
Withrehabilitation, it’s possible for you to remove the default status from your credit history.
To do this, you have to make a certain numbertypically nineconsecutive on-time payments.
The exact amount of each payment is usually based on your income.
Onstudentaid.gov, selectMy Aidin the dropdown menu under your name.
Your loan servicer(s) should appear in that section.
Remember that you’re free to change your repayment plan as your circumstances change.
They also said they will send notices of wage garnishment “later this summer.”
Whatever your status, don’t wait for collections to resume to take action.
Contact your loan servicer to discuss repayment plans.
Consider seeking advice from afinancial counselorif you need additional guidance.
Even if you’re not in danger of default today, you could be soon.
By taking proactive steps now, you could avoid the more severe consequences down the line.
