Satisfactory Repayment Arrangement

If you are in default on a federal student loan, you may regain eligibility to receive federal student aid, or may become eligible to consolidate the defaulted loan, if you make a satisfactory repayment arrangement with the loan holder.

For the purpose of regaining eligibility to receive federal student aid, a satisfactory repayment arrangement requires you to make six consecutive, voluntary, on-time, full monthly payments on the defaulted loan. You can regain eligibility to receive federal student aid by making a satisfactory repayment arrangement on a defaulted loan only one time.

For the purpose of consolidating a defaulted loan into a Direct Consolidation Loan, a satisfactory repayment arrangement requires you to either