Can you qualify for Pell grants even if you have defaulted on a state educational loan

by Eve
(Richmond Virginia)

I have state educational loan with federal money, I guess. I am in a default status, in Chapter 13, how can I get funding to go back to school to get out of my financial rut and dead-end job?

ANSWER:

First of all, you cannot get any sort of federal aid while you are in default. But the government does have a program to get rehabilitated.

You can call 1-800-621-3115, and then a government representative will go over your financial situation with you and figure out what manageable payments you can make. You can go into their loan rehabilitation program, or, now there is an option to make six consecutive, on-time (before the due date) payments to restore your eligibility. But you must continue to make the payments or you will lose your eligibility permanently.