Can I get a Pell Grant with defaulted student loans from 10+ years ago? FAFSA eligibility question

I was in the EXACT same boat last year. Had loans from 2009 that I defaulted on. Bad news - you're not eligible for ANY federal aid (grants OR new loans) while your old loans are in default. You'll need to get those old loans out of default first before FAFSA will approve you for anything new including Pell grants.

You MIGHT be able to get those loans discharged if they're that old, worth looking into. The statute of limitations can vary by state. Good luck!!

To give you accurate information: No, you cannot receive a Pell Grant or any federal student aid if you have defaulted student loans. This is explicitly stated in the FAFSA eligibility requirements. There are three main ways to resolve this: 1. Loan Rehabilitation - Make 9 monthly payments (based on income) over 10 months 2. Loan Consolidation - Consolidate into a new Direct Consolidation Loan 3. Full Repayment - Pay the defaulted loan in full (rarely feasible) Loan rehabilitation is often the best option as it also removes the default from your credit report. Once your loans are out of default, you can immediately apply for FAFSA and potentially receive Pell Grants if you otherwise qualify based on financial need.

my cousin had this happen and she just filled out the fresh start application thing on studentaid.gov and got her loans out of default in like a month, then she could do fafsa again

I had defaulted loans from 2008 and was SO FRUSTRATED trying to reach FSA to start the rehabilitation process. Kept getting disconnected after waiting on hold for hours! Finally I found this service called Claimyr (claimyr.com) that got me through to an actual human at the FSA office within 20 minutes. They have a video showing how it works: https://youtu.be/TbC8dZQWYNQ. Once I talked to a real person, they helped get me set up with income-based payments that were actually affordable (like $9/month for 9 months). Completed rehab last semester and got approved for a Pell Grant for this year!

Just to add some additional info - once you get your loans out of default, you'll need to complete your FAFSA as normal. For Pell Grant eligibility specifically, they'll look at your SAI (Student Aid Index, formerly EFC) to determine if you qualify. The default status of old loans won't affect your Pell eligibility once they're no longer in default. Also, make sure you haven't exceeded your Lifetime Eligibility Used (LEU) for Pell Grants, which is 12 full-time equivalent semesters.

When I was trying to fix my defaulted loans last year, the hardest part was figuring out who even OWNED my loans anymore. They'd been sold to like 3 different servicers over the years and tracking them down was a NIGHTMARE. The studentaid.gov site kept crashing when I tried to look them up too. So frustrating!!!!

i think its so unfair that they punish ppl forever for mistakes from so long ago!! like its been 10 YEARS, shouldn't there be some kind of forgiveness after that much time?? the whole system is designed to keep ppl trapped i swear

Thank you all for the helpful responses. I'm going to look into both the Fresh Start program and loan rehabilitation options. It sounds like I absolutely need to fix these defaulted loans first, but it might not be as expensive as I feared with the income-based repayment plans. I'll check out the studentaid.gov site and hopefully get this resolved so I can continue my education. Really appreciate all the advice!

I went through a very similar situation about 3 years ago - defaulted loans from 2010 that I completely ignored because I was overwhelmed and scared. The good news is that once you tackle this, it's not as insurmountable as it seems! I ended up doing loan rehabilitation and my monthly payments were only $15/month for 9 months based on my income at the time. The key is being honest about your financial situation when they calculate your payment amount. After completing rehabilitation, I was immediately eligible for FAFSA again and received a Pell Grant for the following semester. Don't let the fear of dealing with this keep you from pursuing your education - there are real solutions available, and it sounds like you're in a much better headspace now to handle it. You've got this!

I'm in a very similar situation and have been putting off dealing with my defaulted loans for years out of fear and embarrassment. Reading through all these responses is actually giving me hope that this is fixable! I had no idea about the Fresh Start program or that rehabilitation payments could be so low. I've been working myself up thinking I'd need to pay hundreds per month. @Gabriel Ruiz thank you especially for the detailed breakdown of the three options - that's exactly the kind of concrete information I needed. I think I'm going to start with looking into Fresh Start since that sounds like it might be the quickest path. It's encouraging to hear from people who have actually been through this process and come out the other side. Sometimes you just need to hear that it's possible from real people who've done it.

This thread has been incredibly helpful! I'm also dealing with old defaulted loans (from around 2013) and have been terrified to even look into my options. Reading everyone's experiences with rehabilitation payments as low as $9-15 per month is honestly shocking to me in the best way - I was convinced they'd want like $300+ monthly that I just can't afford. The Fresh Start program sounds amazing too, I had no idea that existed. Quick question for those who went through rehabilitation - how long after you completed the 9 payments were you actually able to submit your FAFSA and get approved? I'm hoping to start school in fall 2025 if I can get this sorted out in time. Thank you all for sharing your stories, it's giving me the courage to finally face this instead of continuing to hide from it!

I'm in almost the exact same situation - defaulted loans from 2012 that I've been avoiding out of pure panic and shame. This entire thread is like a lifeline for me right now! I had absolutely no idea about the Fresh Start program or that rehabilitation payments could be based on income and potentially so affordable. I've been living with this constant anxiety about my financial aid eligibility for YEARS, convinced I was permanently locked out of going back to school. The fact that multiple people here have successfully navigated this process and are now receiving Pell Grants again gives me so much hope. I'm definitely going to start by checking out the Fresh Start program on studentaid.gov since that seems like it might be the fastest route. Thank you everyone for being so open about your experiences - it's exactly what I needed to hear to finally stop running from this problem and start solving it!

Wow, reading through all these experiences has been incredibly eye-opening! I'm actually in a very similar boat - defaulted loans from 2011 that I've been too scared to deal with. Like many of you, I thought I was permanently banned from any financial aid and would need to pay massive amounts monthly to fix it. The Fresh Start program sounds like it could be a game-changer - I had no idea it existed! For those who used Fresh Start, did you have to provide a lot of documentation or was it pretty straightforward? I'm also curious about the timeline - how quickly were you able to get back to good standing? I'm hoping to start classes in spring 2026, so I want to make sure I give myself enough time to get this sorted out. Thank you all for sharing your stories - it's giving me the motivation I needed to finally tackle this instead of continuing to avoid it!

I'm also dealing with defaulted loans from around that same time period (2010-2012) and have been paralyzed by fear about addressing them. Reading through everyone's experiences here is honestly the first time I've felt hopeful about this situation in YEARS! I had completely convinced myself that I was permanently locked out of financial aid and would need to come up with thousands of dollars upfront to fix this mess. The fact that rehabilitation payments can be as low as $9-15 per month based on income is absolutely mind-blowing to me - I was expecting them to demand hundreds that I simply don't have. I'm definitely going to look into both Fresh Start and rehabilitation options. It's so encouraging to see that multiple people here have successfully navigated this process and are now back in school receiving Pell Grants. Thank you all for being so transparent about your journeys - it's exactly the push I needed to stop hiding from this problem and start taking action to solve it!

I'm also in this exact situation with defaulted loans from 2012! Reading through all these responses has been such a relief - I honestly thought I was the only one dealing with this and that I was permanently screwed. The shame and avoidance cycle is so real. I've been putting off going back to school for YEARS because I assumed I'd never qualify for financial aid again. Learning about Fresh Start and that rehabilitation payments can be income-based (and potentially as low as $9/month!) is honestly life-changing information for me. I had no idea these options existed. I'm going to start with Fresh Start since it sounds like the quickest path, but it's reassuring to know rehabilitation is there as a backup. Thank you everyone for sharing your stories so openly - it's giving me the courage to finally face this instead of continuing to let it control my life and educational goals!

I'm in a nearly identical situation - defaulted loans from 2011 that I've been terrified to address for over a decade! This thread is honestly the most helpful thing I've found on this topic. Like so many others here, I had completely convinced myself that I was permanently banned from any federal aid and would need to pay impossible amounts to fix this. The information about Fresh Start and income-based rehabilitation payments being as low as $9-15/month is absolutely shocking to me in the best way possible. I've been carrying around this constant anxiety and shame about my financial aid eligibility for years, always assuming I'd never be able to go back to school. It's incredible to see so many people who have successfully navigated this exact process and are now receiving Pell Grants again. Thank you all for being so open about your experiences - it's giving me the motivation I desperately needed to finally stop running from this problem and start taking concrete steps to solve it. I'm going to start by looking into the Fresh Start program today!

I'm also dealing with defaulted loans from that same time period and have been avoiding this situation for way too long! Reading through everyone's experiences here is incredibly encouraging - I had no idea about the Fresh Start program or that rehabilitation payments could be so affordable. Like many of you, I've been paralyzed by fear and shame, assuming I was permanently locked out of financial aid. It's amazing to see so many people who have successfully gotten through this process and are now back in school receiving Pell Grants. This thread is exactly the motivation I needed to finally stop avoiding this and start taking action. I'm going to look into both Fresh Start and rehabilitation options - it's such a relief to know there are actually viable paths forward. Thank you all for sharing your stories so openly, it's giving me hope that I can fix this mess and get back to pursuing my education!

I'm in a very similar situation with defaulted loans from 2013, and this thread has been incredibly eye-opening for me! I've been avoiding dealing with my loans for years because I was convinced I'd need to pay huge amounts monthly that I simply couldn't afford. Learning about the Fresh Start program and that rehabilitation payments can be as low as $9-15/month based on income is honestly life-changing information. I had completely given up on the idea of going back to school because I thought I was permanently ineligible for any federal aid. Reading all these success stories from people who were in our exact situation and are now receiving Pell Grants again gives me so much hope! I'm definitely going to start by looking into Fresh Start since it seems like the quickest option, but it's reassuring to know rehabilitation is there as a backup plan. Thank you everyone for being so transparent about your experiences - it's exactly what I needed to finally stop letting fear control my educational future!

This thread has been incredibly helpful for me too! I'm in almost the exact same situation - defaulted loans from around 2012 that I've been too scared to deal with for years. Like so many others here, I had convinced myself I was permanently banned from financial aid and would need to come up with thousands upfront to fix this mess. Reading about the Fresh Start program and income-based rehabilitation payments as low as $9-15/month is honestly mind-blowing - I was expecting them to demand hundreds that I simply can't afford. The shame and avoidance cycle is so real, and it's incredible to see how many of us have been carrying this same burden. I'm definitely going to start with Fresh Start since it sounds like the quickest path, but knowing rehabilitation is available as a backup gives me real hope for the first time in years. Thank you everyone for sharing your experiences so openly - it's exactly the push I needed to finally face this instead of continuing to let it control my educational goals!

I'm also in this exact situation with defaulted loans from around 2012! This thread has been such a lifesaver - I've been carrying around this crushing anxiety about my loan status for years, convinced I was permanently locked out of any chance at going back to school. Like so many others here, I had absolutely no idea about the Fresh Start program or that rehabilitation payments could be income-based and potentially as low as $9-15/month. I was terrified they'd demand hundreds per month that I simply can't afford. Reading all these success stories from people who were in our exact situation and are now receiving Pell Grants again is giving me real hope for the first time in over a decade! The shame and avoidance cycle is so real - I've been putting this off for years because it felt too overwhelming to even start addressing. But seeing how many people here have successfully navigated this process proves it's actually doable. I'm going to start by looking into the Fresh Start program since it seems like the quickest route, but it's reassuring to know rehabilitation is there as a backup option. Thank you all for being so transparent about your experiences - it's exactly what I needed to finally stop letting fear control my educational future and start taking concrete action!