Regain Student Financial Aid Eligibility After Default

If you would like to go back to school, you may be able to regain eligibility for student aid after default if you meet certain conditions.

Renewed Eligibility for Financial Aid (REFA)

You may be able to get TAP (Tuition Assistance Program) after default. If you want to go back to school and need TAP, contact HESC to see if you’re eligible through the REFA program. Here's how it works:

  • Make 6 payments. After you make six consecutive, approved monthly payments on time, you’ll be eligible to apply for TAP. A lump sum prepayment of future installments does not satisfy the requirement.
  • The payments must be voluntary. If HESC is getting money to pay back your loan by taking some of your tax refund money, or taking money out of your paycheck (garnishing wages), you’re not eligible for TAP because these payments are not voluntary. But if you make monthly, voluntarily agreed upon payments, in addition to what is being taken, you may be eligible.
  • Apply for TAP. Once you've made your six consecutive monthly voluntary payments, you can apply for TAP.

For details, call 1-866-991-HESC (4372).

 

Renewed Eligibility for Title IV Aid (RETA)

You may be able to get further federal Title IV aid after default. If you want to go back to school and need aid such as a Pell grant or student loan to help you pay for it, contact HESC to see if you’re eligible through the RETA program. Here's how it works:

  • Make 6 payments. After you make six consecutive, full monthly payments on time, you’ll be eligible to apply for federal Title IV aid. A lump sum prepayment of future installments does not satisfy the requirement.
  • Keep paying. To remain eligible in the RETA program, you must keep paying on your defaulted loans. If you miss any future payments after initially being accepted for RETA, you can never be eligible for this program again.
  • The payments must be voluntary. If HESC is getting money to pay back your loan by taking some of your tax refund money, or taking money out of your paycheck (garnishing wages), you’re not eligible for additional financial aid because these payments are not voluntary. But if you make monthly, voluntarily agreed upon payments, in addition to what is being taken, you may be eligible.
  • Apply for federal Title IV aid. Once you've made your six consecutive monthly voluntary payments, you can apply for federal Title IV aid.

For details, call 1-888-NYSHESC (1-888-697-4372).