Can I get FAFSA aid with previous loans in repayment status after 8-year break?
I'm trying to go back to college after dropping out in 2016. I have about $13,500 in outstanding balance from my previous attempt and my student loans are currently in repayment status. I really want to finish my degree now that I'm in a better place mentally and financially, but I'm worried about the financial aid situation. Has anyone here successfully gotten FAFSA assistance when returning to school with existing loans in repayment? Do I need to get my loans out of repayment status first before applying for new financial aid? Or am I completely disqualified because of the old balance? Any advice would be super appreciated!
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Eva St. Cyr
same boat few yrs ago. u need to get ur loans current first or u wont qualify 4 new aid. call ur loan servicer n ask about rehabilitation program
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Nathaniel Mikhaylov
•Thanks for the response! So I definitely need to call my loan servicer first? I was hoping there might be a way to just apply for new aid directly.
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Kristian Bishop
The previous commenter is partially correct, but your situation depends on whether your loans are in DEFAULT or just in REPAYMENT status - those are different things. If your loans are just in normal repayment status (meaning you're making payments or are in an approved deferment/forbearance), you CAN qualify for new federal aid. If they're in DEFAULT (meaning you've missed 9+ months of payments), then you would need to rehabilitate them first. You should check your loan status on studentaid.gov by logging in with your FSA ID. This will show you exactly where you stand. The $13,500 balance at your previous school might be a separate issue - if you owe the school directly (not a federal loan), that might prevent you from getting transcripts but wouldn't necessarily affect your FAFSA eligibility.
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Nathaniel Mikhaylov
•Oh wow, thank you for clarifying! I'm honestly not 100% sure if they're in default or just regular repayment. I haven't made payments in a while but I think I had a deferment at some point. I'll check studentaid.gov right away!
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Kaitlyn Otto
I had almost the EXACT same situation in 2020!!! Dropped out in 2015 with like $11k in loans, tried to go back and got DENIED for financial aid. I was SO ANGRY they didn't tell me my loans were in default!! Wasted a whole semester trying to figure things out and almost gave up completely. The financial aid system is COMPLETELY BROKEN and designed to keep people trapped in debt forever!!!!
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Nathaniel Mikhaylov
•That sounds so frustrating! Did you eventually get it sorted out? I'm worried about wasting time too.
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Kaitlyn Otto
•I did BUT it took FOREVER. Had to do the loan rehabilitation thing which took 9 MONTHS of making payments before I could even APPLY for aid again. And the whole time no one could give me straight answers about anything. The whole system is ridiculous!!!!
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Axel Far
This happened to my sister too when she went back to school. The key thing is whether your loans are in default or not. If they're just in regular repayment you should be fine to get new aid. But that balance at your old school could be a problem too if you want to transfer any credits.
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Nathaniel Mikhaylov
•Good point about the credits. I hadn't even thought about that part yet. I was mostly concerned about being able to get new financial aid to start fresh.
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Jasmine Hernandez
I work for a college financial aid office and deal with this situation regularly. Here's what you need to know: 1. If your loans are in DEFAULT: You'll need to complete loan rehabilitation (9 months of consecutive reasonable & affordable payments) OR do a Direct Consolidation Loan with income-driven repayment. Rehabilitation takes longer but removes the default from your credit report. 2. If your loans are just in REPAYMENT: You're still eligible for new federal aid as long as you haven't exceeded aggregate loan limits. 3. About your school balance: This won't affect your FAFSA eligibility, but most schools won't release transcripts or allow re-enrollment with an outstanding balance. You might need to set up a payment plan with their bursar office. 4. For your next steps: Log into studentaid.gov, check your loan status, and then contact both your loan servicer AND the financial aid office at the school you want to attend. Hope this helps!
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Nathaniel Mikhaylov
•This is incredibly helpful, thank you! I'll check studentaid.gov today and figure out my exact status. Is there any specific information I should have ready when I call my loan servicer?
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Jasmine Hernandez
•Yes, definitely have your FSA ID login info ready, your Social Security Number, and any loan servicer account numbers if you have them. Also, make notes about when your last payment was made and any communication you've had with them previously. The more specific info you have, the better they can help you.
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Eva St. Cyr
btw the school balance is diff from the loans! u might need 2 pay that separate or do payment plan
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Nathaniel Mikhaylov
•Yeah, I think part of my confusion was mixing up the school balance with my actual federal loans. I need to sort out exactly what I owe and to whom.
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Luis Johnson
I went back to school after 12 years with defaulted loans. Here's what I did: 1. Called my loan servicer and set up a rehabilitation plan 2. Made 9 months of payments (mine were only $89/month based on my income) 3. Once rehabilitation was complete, filled out my FAFSA 4. Got approved for grants AND loans for my new program It was a pain but totally worth it. Also bonus: the default was removed from my credit report and my score jumped almost 100 points!
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Nathaniel Mikhaylov
•That's really encouraging to hear! I'm willing to go through the process if it means I can finally finish my degree. Did you have any issues with the school you previously attended?
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Luis Johnson
•I went to a completely different school so I didn't need anything from my old one. If you need transcripts though, you'll probably have to work out that balance separately. Some schools will let you set up a payment plan to get your transcripts released.
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Ellie Kim
Be careful about your SAI (Student Aid Index) calculations with your new FAFSA! The 2024-2025 FAFSA uses the new formula, and having previous education debt can affect your eligibility for certain types of aid. Make sure you accurately report all your assets and income. The system is really confusing now with all the recent changes.
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Jasmine Hernandez
•This is a good point, but to clarify: existing student loan debt doesn't directly impact your SAI calculation. However, your previous aid usage DOES count toward your lifetime eligibility limits. For example, if you've already used 3 years of Pell Grant eligibility, you'd only have about 3 years remaining (since the lifetime limit is equivalent to 6 years of full-time enrollment).
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Kristian Bishop
One last thing - once you determine your loan status and next steps, be sure to fill out the 2024-2025 FAFSA as soon as possible if you're planning to start school in the coming academic year. With all the FAFSA delays and processing issues this year, you don't want to wait until the last minute.
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Nathaniel Mikhaylov
•That's great advice, thank you! I've been hearing about all the FAFSA problems this year. I'll get on it right away once I figure out my loan situation.
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Heather Tyson
Hey Nathaniel! I went through something similar about 3 years ago. The biggest thing that helped me was getting organized first - I made a spreadsheet with all my loan info, servicer contact details, and payment history. Also, don't forget to check if you qualify for any state-specific financial aid programs when you go back. Some states have "second chance" grants for students returning after a break. The federal stuff is important but state aid can really help fill in gaps. Good luck with everything - it's totally doable even though it feels overwhelming right now!
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Malik Thomas
•Thank you so much for the encouragement, Heather! I really appreciate the tip about making a spreadsheet - that's actually a great idea to get everything organized before I start making calls. I hadn't thought about state-specific programs either, so I'll definitely look into that once I get the federal situation sorted out. It does feel pretty overwhelming right now, but hearing from people like you who've been through this successfully really helps! Did you end up going back to the same school or did you start fresh somewhere else?
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Esteban Tate
•@Malik Thomas I went to a completely different school actually! I decided I wanted a fresh start and the program I was interested in wasn t'available at my old school anyway. It ended up being the right choice for me because I didn t'have to deal with any transcript or balance issues from my previous school. The new school s'financial aid office was also really helpful in walking me through the whole process once I got my loan situation straightened out. If you re'considering switching schools, it might actually make things easier in some ways!
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Natasha Romanova
Just wanted to add my experience here since I was in almost exactly the same situation! I dropped out in 2017 with about $15k in loans and went back in 2022. The most important thing is definitely checking your loan status on studentaid.gov first - mine were actually in default even though I thought they were just in normal repayment. Had to do the rehabilitation program which took about 10 months, but once that was done I was able to get full financial aid including Pell grants. The whole process was frustrating but absolutely worth it. One thing I wish someone had told me is to also check with your state's higher education agency - many states have programs specifically for adult learners returning to school that can supplement federal aid. Don't give up on your degree dreams! It's definitely possible to make it work.
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AstroAce
•Thanks for sharing your experience, Natasha! It's really reassuring to hear from someone who went through almost the exact same timeline. I'm definitely going to check studentaid.gov first thing - it sounds like a lot of people think their loans are in one status when they're actually in another. The 10 months for rehabilitation sounds long but doable if it means I can get back on track with my education. I'll also look into state programs once I get the federal stuff figured out. Did you end up staying with the same major you had before, or did you switch when you went back?
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