Question:
Dear Steve,
I have defaulted on a direct federal consolidation loan. I was a teacher but had an on the job accident and I am no longer able to stand to teach. Luckily, I was a career change person and have been able to find a job in another industry (not public service related) I owe 112,000 in student loans and was planning to do the pay for 10 years as a teacher and have remaining balance forgiven.
How do I get out of default when I can barely afford to living expenses? Please give me options.
Dayna
Answer:
Dear Dayna,
So sorry to hear about your medical issues.
If you were on a Direct Consolidation Loan you should ask your servicer to place you in one of the Income Driven Repayment programs. This will keep you out of default and give you a payment as low as $0 per month.
For more information click here.
