Federal regulations prohibit the awarding of additional federal student aid (FSA) to students who have defaulted on a federal student loan. However, a student can regain eligibility for FSA by resolving the default status.
The U.S. Department of Education has established the following three methods to resolve a default status:
After a default status has been resolved, sufficient documentation must be sent to the school indicating the student has regained federal aid eligibility. Per federal regulations, the documentation must be from the entity that reported the default to NSLDS; clearly show that each defaulted loan has been resolved; be provided in writing on the entity’s letterhead (or other format that ensures its origin) and dated.
Additional information can be found at the U.S. Department of Education’s Federal Student Aid website: http://www2.ed.gov/offices/OSFAP/DCS/index.html
In addition to clearing a default, students must complete an additional financial literacy requirement at Liberty University prior to receiving any Federal Title IV aid or institutional aid. We recommend completing the requirement as soon as possible to prevent any delays in processing aid. This two-part counseling requires 24-hours between completing section 1 and 2 and students must use their Liberty email address to sign-up or they risk not receiving credit for completing the course. To begin, click here. Step-by-step instructions through the financial literacy entrance counseling can be accessed here.