how do i change default status on on my student loans?

Answer 1

You are in a default status because you failed to make payments on your loans. This is never a good place to be: to get their money back, the loan holder can (and will)

* garnish your wages
* demand payment of the entire principal balance up front
* withhold your tax return

and so on... The default will also stay on your credit report for 7 years *after* you resolve it. So, essentially, to get out of default, you need to make regular, on-time payments on all of your loans.

Your first step should always be to contact the holder of your loans. This may be a lender (a bank, like Citizens or Bank of America) or a servicer (like Sallie Mae). If your loans have been sent to collections, you will probably need to call the collections agency. Simply put, make the call to whatever company has been sending you those angry (I assume) letters.

Your loan holder will be able to help you (a) get your loan out of default and (b) arrange a payment plan that suits your needs so that you can stay out of default.

Whenever possible, see if you can "rehabilitate" your loan. This generally entails making a certain number (usually 6-9) on-time payments, after which you will again be eligible to borrow federal loans AND clear up your adverse credit.

if you don't know who your loan holder is, go to www.nslds.ed.gov to look up your federal student loan history.

Answer 2

you contact the loan company and either explain that you cannot pay and why. You may have to provide documentation. Or you can make adjustments to lower your monthly payments so that you can afford it typically this raises the total interest paid. Either way first step is to contact them....typically they are happy to work with young graduates.

Answer 3

With mine I just have to call and tell them. I guess it depends who yours are with.