Can I Still Qualify for Federal Grant if in Default on Private Student Loan
My question involves collection proceedings in the State of: Oklahoma
I am pretty certain my private student loans are in default but have yet to locate the current holder/servicer of the loans.
Meanwhile, I have found myself with no other choice but to further my education for which I am hoping to receive a Pell Grant.
Will the status of the Private Student Loans effect the receipt of federal funds?
Thank you for any help you can offer
Re: Can I Still Qualify for Federal Grant if in Default on Private Student Loan
To qualify for a Pell Grant you must certify that you are not currently in default for any federal student loans, and that you don’t owe a refund for any federal education grants.
Re: Can I Still Qualify for Federal Grant if in Default on Private Student Loan
Thank you for your answer. Very helpful. Although I am unclear on the subject of owing a refund for a federal education grant. Why or in what circumstance would someone owe a refund for a federal grant? Thank you once again.
BTW, Thanks for re-wording the heading on my initial question headline. Newbie.
Re: Can I Still Qualify for Federal Grant if in Default on Private Student Loan
Because they did not fulfill the terms the grant was tendered under. Possibly poor grades, dropping out of school or going below full time.
Re: Can I Still Qualify for Federal Grant if in Default on Private Student Loan
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Quoting
justagirl123
Thank you for your answer. Very helpful. Although I am unclear on the subject of owing a refund for a federal education grant. Why or in what circumstance would someone owe a refund for a federal grant? Thank you once again.
You would owe a refund for a federal education grant when you withdraw from school before the semester is over. You would need to contact your financial aid officer on when. It can also happen if you are on academic probation and fail all your classes. When you first fail you can work something out with the financial aid office and your dean (usually). Even if you are below acceptable in your program they may give you a year to catch up to standards. In this case you should not worry. If you failed you may have to. But remember to always speak to your financial aid office. They may stop this or help you if you have valid reasoning such as medical illness, death of family member and personal trials and tribulations.
In essence, you generally owe your pell and state grants when you take off and do not account for them with your college. It can happen in other circumstances though (this is most common).
Re: Can I Still Qualify for Federal Grant if in Default on Private Student Loan
the answer is YES. i been going through this for 6 months now. i defaulted on federal and privat school loans. i consolidated my federal loans through DIRECT LOANS and my fasfa went trough and now im recieving PELL...
Re: Can I Still Qualify for Federal Grant if in Default on Private Student Loan
If you consolidated your student loans such that you were not in default, you were no longer in default.
Re: Can I Still Qualify for Federal Grant if in Default on Private Student Loan
Get a job and go to nite school.