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Instructor Who Said Trump Should Be Shot Loses Job at Montclair State U.

Chronicle of Higher Education - August 1, 2017 - 1:14pm
The adjunct had previously drawn criticism for remarks about gun control while employed by Rutgers University, which later fired him.
Categories: Higher Education News

Bipartisan Senators Resist DeVos’s Switch on Loan Servicing

Chronicle of Higher Education - August 1, 2017 - 10:42am
The lawmakers introduced legislation on Monday that would temporarily suspend the Department of Education’s ability to choose a single student-loan servicer.
Categories: Higher Education News

As Crisis Grows, U. of Southern California’s Statements Evolve

Chronicle of Higher Education - July 31, 2017 - 1:27pm
The university’s responses to revelations about its former dean of the medical school, Carmen A. Puliafito, have changed significantly as more information has come to light.
Categories: Higher Education News

3 Ways to Get Out of Student Loan Default

U.S. Department of Education Blog - July 31, 2017 - 11:42am


If you didn’t make payments on your federal student loans and are now in default, don’t get discouraged. It may seem like an overwhelming situation, but you have multiple options for getting out of default. Remember, it’s in your best interest to act quickly to resolve the default, because the consequences of default can be severe.

If you have a defaulted federal student loan owned by the U.S. Department of Education (ED), immediately contact ED’s Default Resolution Group. They will help you figure out the best way to resolve the default based on your individual circumstance.

Default Resolution Group
1-800-621-3115
1-877-825-9923 TTY for the deaf or hard of hearing

Options for Getting Out of Default

You have three options for getting out of default: loan rehabilitation, loan consolidation, or repayment in full.

1. Loan Rehabilitation

To rehabilitate most defaulted federal student loans, you must sign an agreement to make a series of nine monthly payments over a period of 10 consecutive months. The monthly payment amount you’ll be offered will be based on your income, so it should be affordable. In fact, your monthly payment under a loan rehabilitation agreement could be as low as $5! Each payment must be made within 20 days of the due date.

Get more information about loan rehabilitation.

Note: You can rehabilitate a defaulted loan only once.

2. Loan Consolidation

Loan consolidation allows you to pay off your defaulted federal student loans by consolidating (combining) your loans into a new Direct Consolidation Loan.

To consolidate a defaulted federal student loan into a new Direct Consolidation Loan, you must either

  • agree to repay the new Direct Consolidation Loan under an income-driven repayment plan or
  • make three consecutive, voluntary, on-time, full monthly payments on the defaulted loan before you consolidate it.

Learn about which repayment plans will be available to you, and get additional information about loan consolidation.

3. Repayment in full

Repayment in full is exactly as it sounds; you can repay the full amount that you owe at any time.

We understand that repayment in full is not a viable option for most people. If that’s the case, you should focus on deciding between loan rehabilitation and loan consolidation.

Comparing the Benefits You Regain After Rehabilitation and Consolidation
Now that you have a better understanding of what rehabilitation and consolidation are, you can determine which option is best for you. Once your loan has successfully been removed from default, you will regain eligibility for certain benefits, depending on whether you chose rehabilitation or consolidation.

Loan Rehabilitation Loan Consolidation Regained eligibility for deferment, forbearance, and loan forgiveness Yes Yes Regained eligibility for additional federal student aid Yes Yes Choice of repayment plans Yes Yes (but there may be limitations—see below**) Removal of the record of default from your credit history Yes (but see below*) No

*If you rehabilitate a defaulted loan, the record of the default will be removed from your credit history. However, your credit history will still show late payments that were reported by your loan holder before the loan went into default. If you consolidate a defaulted loan, the record of the default (as well as late payments reported before the loan went into default) will remain in your credit history.

**Unless you make three voluntary, on-time, full monthly payments on a defaulted loan before you consolidate it, your choice of repayment plans for the new Direct Consolidation Loan will be limited to one of the income-driven repayment plans. If you make three voluntary, on-time, full monthly payments before consolidating, you can choose from any of the repayment plans available to Direct Consolidation Loan borrowers.

Staying Out of Default

There are a number of things you can do to keep yourself on track and out of default:

1. Enroll in an income-driven repayment plan.

If you haven’t already, you should consider enrolling in an income-driven repayment plan. Learn more about income-driven plans.

2. Consider setting up automatic payments.

Sign up for automatic debit through your loan servicer, and monthly payments will automatically be made from your bank account. You may also get a 0.25% interest rate deduction just for enrolling.

3. Track your loans online.

Log in to “My Federal Student Aid” to find information about all of your federal student loans.

4. Keep good records.

It’s helpful to keep important documents such as records of monthly payments, payment schedules, and notes about phone calls to your loan servicer in an organized file.

5. Stay in touch with your loan servicer.

As soon as you think that you’ll have trouble making your monthly payment, contact your loan servicer to discuss your situation—they are there to help you. Additionally, if you enrolled in an income-driven repayment plan, your loan servicer will let you know when it’s time to recertify your income and family size.
 

Nick Dvorscak is a Management and Program Analyst for Federal Student Aid.

Continue the conversation on Facebook or Twitter.

The post 3 Ways to Get Out of Student Loan Default appeared first on ED.gov Blog.

Categories: Higher Education News

U. of North Carolina Chancellor Criticizes Board’s Proposal to Hamstring Civil-Rights Center

Chronicle of Higher Education - July 31, 2017 - 10:03am
Carol Folt wrote that preventing the center from filing lawsuits would harm “the law school’s ability to train the next generation of civil-rights lawyers” and reflect badly on the entire state.
Categories: Higher Education News

University Leaders Should Plan for Another Year of Campus-Speech Protests. Here’s How.

Chronicle of Higher Education - July 30, 2017 - 5:48pm
When polarizing speakers come to campus, there’s no way to guarantee that violence won’t ensue. But student-affairs officials say there are several steps that can mitigate risk.
Categories: Higher Education News

What I’m Reading: ‘Written/Unwritten’

Chronicle of Higher Education - July 30, 2017 - 4:30pm
A new book is an important guide for faculty members of color on how to earn tenure while remaining authentic.
Categories: Higher Education News

Teaching the Art of the Difficult Classroom Conversation

Chronicle of Higher Education - July 30, 2017 - 4:30pm
Today’s minefield of political and social issues requires even the most experienced educators to step carefully.
Categories: Higher Education News

Training Graduate Students to Be Effective Teachers

Chronicle of Higher Education - July 30, 2017 - 4:30pm
More colleges are making it a priority to teach future faculty members how to teach.
Categories: Higher Education News

What I'm Reading: ‘Written/Unwritten'

Chronicle of Higher Education - July 30, 2017 - 4:30pm
A new book is an important guide for faculty members of color on how to earn tenure while remaining authentic.
Categories: Higher Education News

A Look at Teacher-Training Programs for Graduate Students

Chronicle of Higher Education - July 30, 2017 - 4:30pm
Universities often offer orientations and workshops, though not all programs are mandatory.
Categories: Higher Education News

Appointments, Resignations, Deaths (8/4/2017)

Chronicle of Higher Education - July 30, 2017 - 4:30pm
Subra Suresh, who stepped down this summer as president of Carnegie Mellon, will lead a university in Singapore. The University of California named a new provost.
Categories: Higher Education News

Selected New Books on Higher Education

Chronicle of Higher Education - July 30, 2017 - 4:30pm
Compiled by Nina C. Ayoub
Categories: Higher Education News

Inside the Struggles of a Less-Selective College

Chronicle of Higher Education - July 30, 2017 - 4:30pm
By embedding himself in an admissions office, an author saw up close the difficulties of providing valued degrees to underserved students.
Categories: Higher Education News

In Charlottesville, UVa Grapples With Its History and the Alt-Right

Chronicle of Higher Education - July 30, 2017 - 3:45pm
The University of Virginia is bracing for a march of extremist right-wing groups in its home city. The event is expected to inflame tensions that have been brewing for months.
Categories: Higher Education News

Idea Lab: Colleges Solving Problems

Chronicle of Higher Education - July 29, 2017 - 10:00pm
A collection of more than two dozen explorations of the problems colleges face, and how they are solving them. The articles include news, analysis, data, advice, and opinion.
Categories: Higher Education News

Comic-Con, a Meteorite Petting Zoo, and a $10,000 VIP Package — All for 2 Minutes of Darkness

Chronicle of Higher Education - July 29, 2017 - 10:10am
For universities in the path of the solar eclipse on August 21, the event is an opportunity to show off physics departments, conduct some experiments, and — if they’re really lucky — make a little money.
Categories: Higher Education News

UC-Irvine Withdraws 500 Admissions Offers 2 Months Before Fall Term

Chronicle of Higher Education - July 28, 2017 - 1:05pm
The University of California campus, which cited transcript problems and poor senior-year grades in its decisions, said in an apology that unprecedented demand had forced it to take “a harder line” on applicants.
Categories: Higher Education News

When a Bid for Tenure Fails, This Is What Bouncing Back Looks Like

Chronicle of Higher Education - July 28, 2017 - 12:49pm
Tenure denials can spark sadness and anger, but also reinvention.
Categories: Higher Education News

Teaching Ph.D.s How to Teach

Chronicle of Higher Education - July 27, 2017 - 10:00pm
Doctoral training hasn’t traditionally been concerned with whether future faculty members are good teachers. New programs are meant to change that.
Categories: Higher Education News

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