To resolve a defaulted Title IV loan, how many consecutive full on-time monthly payments must a borrower make after entering into a repayment arrangement?

To resolve a defaulted Title IV loan, a borrower must make six consecutive full on-time monthly payments after entering into a repayment arrangement. This requirement is in place to demonstrate the borrower's ability to manage regular loan repayments and shows a commitment to repaying the debt. By completing these six payments, the borrower can rehabilitate their loan, which has several benefits, including the removal of the default status from their credit report and regaining eligibility for additional federal student aid.

The significance of this six-payment requirement underscores the importance of stability and reliability in repayment behavior before a borrower can successfully resolve a default status. It's designed to ensure that borrowers not only enter into a repayment plan but also follow through with consistent payments over an extended period, thereby establishing a pattern of responsible financial behavior.