I was receiving federal financial aid when I was incarcerated, my loans went into default. What can I do?

Start by calling your federal loan provider. A representative may be able to talk through your options. Most likely, you will have to rehabilitate your loan, which requires you to make nine consecutive monthly payments.[2925] If you are currently incarcerated, that payment may be as low as $5.[2926]

Once you have successfully rehabilitated your loan, you can apply for an income-driven repayment plan, which lets you pay off your loans using a portion of your income. If you are currently incarcerated, you may not have any monthly payments at all.[2927]

  1. 2925

    Fed. Interagency Reetry Council, Reentry MythBuster on Repaying Federal Student Loans White Incarcerated, https://www2.ed.gov/students/prep/juvenile-justice-transition/repaying-loans-while-incarcerated.pdf.

  2. 2926

    34 C.F.R. § 682.405.

  3. 2927

    20 C.F.R. § 1098E.