Student loans paid for your education, but what happens when you can't pay them back? Student loans can't be discharged in a bankruptcy, so they are often the last debt standing when times are hard. For monthly payers, a student loan enters default after 270 days without a payment. Defaulted loans reflect badly on your credit report and prevent you from being able to borrow any further student loans. A defaulted student loan can be approached in several ways, including repayment and rehabilitation. To begin the process of getting your student loan out of default, you'll need to fill out a Statement of Financial Status.
Locate your most recent pay stubs and download the Statement of Financial Status form from the Department of Education's website.
Determine a reasonable monthly payment amount that fits within your budget. Enter this amount on the first line of the form.
Fill in your personal information, including your county of residence, Social Security number, name, address and the name of your current employer.
Enter the number of dependents you claimed on your tax return last year, including yourself. If you are married, enter your spouse's name and Social Security number.
Enter the gross and net monthly income for yourself and for your spouse, if applicable. Your gross monthly income is your income before taxes, insurance and any other deductions are made. Your net income is the amount you receive after taxes.
Enter the income of any other person contributing to your household and of any other payment sources, such as child support or alimony.
List your monthly expenses including rent or mortgage, property taxes and home insurance. Also list the agencies to which you pay these expenses, since the Department of Education may need to contact them to verify your status.
Enter your living expenses in the columns at the bottom of the page. These expenses include your utility bills, food, clothing, transportation, child care and medical expenses.
List your assets, including any bank accounts, investments, property and cars. Finish by adding your signature and the date to the form.
Send the form to the following address:
U.S. Department Of Education P.O. Box 5609 Greenville, TX 75403-5609