<%@ Page Language="VB" AutoEventWireup="false" CodeFile="Schools.aspx.vb" Inherits="Schools" %> Student - Reinstatement of Eligibility After Default
OSFA - The Federal Family Education Loan Program


Reinstatement of Eligibility After Default
For a borrower to obtain reinstatement of eligibility for Title IV student assistance funds, a borrower and guaranty agency must reach an agreement to on satisfactory repayment arrangements on the balance of the defaulted loan(s) (six on-time, reasonable, and affordable consecutive voluntary monthly payments), the borrower may regain eligibility for SFA funds.  On-time means payments received within 20 days before or after the due date.   A borrower who resolves a default by consolidating a defaulted FFEL also regains eligibility once the defaulted loan has been paid in full by the Consolidation Loan or Direct Consolidation Loan.
The guaranty agency will inform a defaulted borrower who has made six payments as described above of the possibility of loan rehabilitation.  For more information of rehabilitation of a defaulted loan please click on Rehabilitation.  Reinstatement of eligibility does not bring a loan out of default, and the borrower is not eligible for deferments.
If a student regains eligibility during an enrollment period (if the sixth payment under a satisfactory repayment arrangement is made after the start of an enrollment period, for example), the student regains eligibility for the entire academic year in which the borrower regained eligibility status.
If a borrower has made satisfactory repayment arrangements to repay a defaulted loan, the SAR will indicate that the borrower is eligible but will include a warning that if scheduled payments are not made on the loan, future federal student aid will be denied.  The financial aid administrator may reconcile the SAR with official paperwork from the lender stating that the default has been satisfied.  This documentation is kept in the student's file and the financial aid administrator may then determine the student's eligibility for a loan.

If you are interested in reinstating your eligibility for financial assistance for Title IV loan funds or would like further information, please contact Sharon.Kalicki@fldoe.org.
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