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Well, the best way to get out of student loan default is to not default in the first place. However, if you have already defaulted on your federal student loans, there are ways to get out—in fact, there are four major options.

Pay Off the Loan in Full

Let’s start off with the most obvious, if a bit intimidating. One way to get out of default is just to pay off the entire loan in one sitting. This option is far from ideal for some students, as they would not have gone into default in the first place if they had the money to pay off the loan. But sometimes a family member might lend a helping hand or perhaps you get a new job after you default and have the income to pay the debt. Regardless of how, the US Department of Education will accept checks or even credit card payments.

Cancel the Loan

This option has a lot of regulations attached to it, of course. You can’t just cancel a loan for any reason whatsoever. Circumstances like sudden disability from an accident or your college being shut down are grounds to cancel a loan in default, but even they have strict rules to follow. All the same, it is still possible to cancel your federal loan repayments.

Consolidate Loans

Student loan consolidation is definitely something to consider—instead of paying different payments at different times with your different loans, consolidation allows them to be compiled into a singular payment. If you’re in default, you’ll be asked to make three consecutive one-time payments, otherwise you’re other option is to join up with an income-based repayment plan.

Rehabilitate the Loan

Another way to get out of default is to work directly with Department of Education to work out a repayment plan that works for the both of you. 10 on-time payments will be established, and you have to meet 9 of the 10. It can be a bit of a complicated process, but many find it well worth it.

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