Because each situation is unique, you should contact the servicer of the loans for an accurate answer in your particular case. If you don't know who that is, you can find out by going to www.nslds.ed.gov. However, in general: To get out of default, you have two possible options: rehabilitation, or...
Best answer: Because each situation is unique, you should contact the servicer of the loans for an accurate answer in your particular case. If you don't know who that is, you can find out by going to www.nslds.ed.gov. However, in general: To get out of default, you have two possible options: rehabilitation, or consolidation. To rehabilitate your loan, you would need to make 9 on time payments under a payment arrangement you set up with the servicer of the loans. There are a number of options, including some that are based on a percentage of your disposable income. If you have a federal student loan that is not in default, you can also get out of default by consolidating the defaulted loans with the one that is not defaulted. All of the loans will be paid off and replaced with a single new loan that is not in default. Usually, you will be placed in an income based repayment plan. Although there are ways to lower the payments by choosing extended term or income based payment plans, there probably is no immediate way to lower the loan other than paying it. There is a very limited loan discharge program that affects some students who attended Brown Mackie, but it applies only to students who attended certain branches of the school in Indiana, attended for less than 45 days and whose last day was between 2006 and 2014. Since you graduated and were there in 2015, it doesn't seem like that would apply to you. However, the cases against EDMC (the parent company of Brown Mackie), are constantly evolving, so you really should speak with the servicer of the loans for the most current information. Other than that, once your loans are out of default, if you qualify, you can participate in certain loan forgiveness programs, such as the Public Service Loan Forgiveness program, or forgiveness for volunteer service with AmeriCorps or Vista. You can find full information about your payment and loan forgiveness options at the official government student loans sites: studentaid.gov and studentloans.gov Concerning your tax refund, the answer is probably not. Although they are entitled to attach any government payment to satisfy your debt, the IRS generally does not do that without prior notice, so if you haven't heard from them yet it probably isn't going to happen this year--but there are no guarantees. If you file jointly, they can take the entire refund, including your husband's share, but he can file an injured spouse allocation form when you file and may be able to protect his share. You should ask your tax preparer to help you decide if it makes more sense for you to file a separate tax return.
2 weeks ago