Review the status of your loan. Call your lenders and request for an administrative review to ensure that you make an arrangement to pay all your defaulted loans. Note the lender is under no obligation to contact you concerning the pending loans. Understanding the status of your loans will help you in negotiating a reasonable repayment arrangement.
Re-establish your eligibility. All lending and guaranty agencies, as well as the U.S. Department of Education, that lend student loans are obliged by law to accept regular monthly payments from a student. By contacting your lender, you are able to discuss the amount you will pay towards clearing off the pending loan. Ensure that you follow up with the agreed payment arrangements. After you make six consecutive monthly payments, you will be able to get new student loans and grants.
Consolidate your loans. Even if you are in default you may still be eligible for loan consolidation. Contact a consolidation lender such as the Federal Family Education Loan program, or other commercial lenders to bring all your loans together under one loan with a single interest rate and payment plan. Consolidation means you will be out of default, you can get income sensitive repayment plans, and you will be eligible for deferment, forbearance and new loans.
Rehabilitate your default loan. Contact your lender and request loan rehabilitation. You will be taken out of default status, and your credit report will not show the default. You will again be eligible for deferrals and forbearance, your income tax refunds will no longer be withheld and wage garnishment will not be enforced. You will automatically be placed on a longer repayment schedule to allow enough time to pay off the loan.