How to Get Assistance for a Defaulted Student Loan

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    • 1). Call your student loan lender and ask about a lower payment. Mention that you can't afford the student loan at the current payment, and then request a payment modification. The lender may request information about employment and income, and if you qualify for help, they might lower your current payment to increase affordability.

    • 2). Use loan rehabilitation to get out of default status, and help your credit. Speak with a representative from your student loan lender to see if you meet the criteria for loan rehabilitation. If eligible, you agree to make a specific number of timely payments over a set period of months. If you fulfill this obligation, your lender will delete negative information from your credit report.

    • 3). Consolidate to pay off the defaulted loan. With a co-signer's help, apply for a student loan consolidation to start fresh. The money received from the consolidation pays off the old defaulted loan, and you then begin making payments to your new lender. Check with private lenders, such as banks and credit unions, to consolidate your loans.

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