Are there any government programs to help those who have defaulted on their student loans?

Yes, there are government programs available for those who have defaulted on their student loans in New Mexico. The first step in the process is to apply for loan rehabilitation. This program is designed to help defaulted borrowers get back on track by giving them the opportunity to bring their loans out of default through a series of nine consecutive, on-time payments. If the loan rehabilitation program is unsuccessful, borrowers may be eligible for a loan consolidation. This program combines multiple federal student loans into one new loan with a different repayment schedule. The new loan also eliminates the interest that had accumulated during the defaulted period. Finally, borrowers may be able to apply for deferment or forbearance. These are programs that allow borrowers to temporarily postpone making payments on their loan. This can help borrowers manage their financial situation and give them the opportunity to get back on track. Overall, there are multiple government programs available to help borrowers who have defaulted on their student loans. It is important to research and understand the different programs so that borrowers can select the one that best fits their individual situation.

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Are there any government programs to help those who have defaulted on their student loans?

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