Student Loan Repayment Program

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    Hello forum,

    Long-time reader; decided to get in the game and ask some of the questions I’ve had. A little background info:

    Attended event in Philly – June, 2017: Was overwhelmed by action plan and pretty green. Casually watched video but didn’t follow-up

    Attended ATD – June, 2020: I met with a bomb counselor from CALI who was super helpful. She was impressed by all of my improvement and provided me with a new action plan. The major issues was that I had 3 late fees in the past 12 months, and student loans in default. I had the MRF and didn’t need payment shock due to high rents in the NYC area. She told me that by September, 2020 I would be able to get qualified because the late fees would be older than one year and the loans would have 6 months of on-time payments in a payment plan. She set me up with a new appointment with my local counselor for late September.

    Here’s my question: I am on a 10-month income-based rehab program and will have 6 months of payments by September. The loan will however not go out of default until December, 2020. Because of the CARES act, I was technically not required to make payments, but the MC said that I should to rack up the 6 months of payments.

    – Can someone be considered NACA qualified after 6 on-time payments in a qualified income based repayment program, even if the loan is still technically in default?

    Thanks in advance for all of the advice!


    Good morning-

    Hoping to get some advice here @ttrumble. I was told that I need 6 months of on-time payments in a qualified IBR program.

    I made 2 out of 6 payments at the time of my meeting and provided the agreement documentation in my file.

    At the time of the 6th payment, I’ll still have 3 months of payments before the loan is out of default.

    Was I advised correctly here? Can I be NACA qualified after making the 6th payment in this plan?

    Thank you!


    Hello 40Acres2020,

    If you are in a documented loan rehab plan with the loan servicer and have made six consecutive months of on-time payments as defined by the rehab plan, we will consider the loan sufficiently rehabbed to proceed with qualification. Based on what you wrote, you should be good to go in September.

    Tim Trumble
    Online Operations, NACA

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