I am in default on a student federal subsidized loan. I have been going to school, but I was also working at a job where I didn't make very much money but full tuition assistance was part of it, so I didn't have to worry about paying tuition. I no longer am at that job, so I have to start paying on my own again.

What I would like to know is, if I contact Dept. of Ed (who holds my loan at the moment) and make a payment arrangement, will I be able to fill out my FAFSA and receive aid of some sort in January when I start school again?
Thank you.

If you were to start rehab and make monthly payments, you wouldn't be eligible for new federal aid until you make 6 consecutive payments.

The only ways I can think of to regain eligibility by January are payment in full and consolidation. The choice between rehab and consolidation will have implications for your credit report and score, so you'll want to do your research before making your decision.

Things have changed for me. I won't be able to attend school at the beginning of next year. The earliest I can start will be Fall of 2009 which for my school is the end of August.

I will contact the agency then as ask about rehab and I will begin making payments. Hopefully then I will be able to apply for aid for Fall 2009.