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 for aid 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 another student loan 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 more information. call 1-888-NYSHESC (1-888-697-4372).