I have a federal student loan which has been in default for well over a year. The debt collection agency is calling and threatening to garnish my wages; I obviously do not want this to happen.
I would like to get my loan out of default so I can take advantage of all the repayment options available to me. What can I do to get my federal student loan out of default? I can’t afford to pay them more than about $50 a month on my loan whose balance is now up to $8,000.
With limited funds you may want to explore the Income Based Repayment (IBR) plans currently offered that are calculated on what you make.
Otherwise you can check out this information.