You might still be eligible for various forms of financial aid if you owe money on other financial aid you received in the past. Depending on your individual circumstances, you can still get student loans, grants or scholarships. Avoiding and rectifying loan and grant repayment default is important to qualify for new financial aid.
Default
If you are in default on any student loan, you typically cannot receive any new financial aid. This is true of financial aid in the form of grants and loans from the federal government. Other financial aid sources might have other policies. Until you make satisfactory repayment arrangements, you must pay your tuition and other related expenses. Avoid student loan default by staying in regular communication with your lenders about your financial situation. You might be able to adjust your payment schedule according to your income or have your loan go into deferment or forbearance.
Service Requirements
Some grants have service requirements. If you dont fulfill them, you might have to repay the amount of the grants you received. This is the case for grants for teaching, allied health and other fields for which education grants are offered to attract people to the fields various occupations. If you do not meet the repayment requirements of a grant for which you did not meet the service stipulations, you will not be eligible for further federal financial aid. To qualify for financial aid in the future, meet your grants service requirements, or stay current on your payments.
Deferment and Forbearance
If you currently have student loans and are not in default, contact your lender about putting your account into deferment or forbearance. When you defer your payments, you stop making payments on your loan, and your interest does not continue to accrue. Forbearance means that interest still accrues on your principal and is capitalized. You can choose whether to pay the interest while in forbearance. If you enroll in college, your lenders might be willing to put your loans into deferment. If youre having financial difficulties, you might be eligible for forbearance. When you find that youre having problems repaying your loan or that you will soon have problems, ask your lender about putting your loans into deferment or forbearance to avoid not being able to apply for new financial aid.
Staying Current
If you are current on your student loans, you can apply for grants, scholarships, private loans and federal student loans if you have not used the maximum amount of federal student loans for which you are eligible. Staying current on your loans is the best way to be eligible for financial aid in the future.
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