Students in default cannot receive any form of government aid (including loans). If you are currently in default on a loan there are a few options you have to clear your default status.
1. Repay the loan in full. Once the loan has been repaid in full the default status can be cleared.
2. Make satisfactory repayment arrangements. Sometimes you can work with your lender to set up a payment plan that works for both you and your lender. Once you have made these arrangements you will still need to make 9 consecutive, full, on time, voluntary payments before your default status will be cleared.
3. Loan rehabilitation. A loan will not be considered rehabilitated until a student makes 9 consecutive, full, on time, voluntary payments.
Keep in mind that even after you have completed one of these options, sometimes it takes the lender a few months to update the National Student Loan Data System. You can either wait for them to update it or request a letter detailing your updated loan status to be sent to the school.