Your best plan of attack would be to make sure that you let the financial aid office know that you will be out of default in September. The default is gong to come up on your ISIR ( same as a SAR but it is the schools output document). The default will put you in a hold status ( C-Code), the school will have to clear it before you can receive aid. They will do that after they receive documents letting them know that the default will be resolved. I would ask for a letter from the loan company you have the defaulted loans with ( or DOE is they are direct loans). After that, you should be good to go.

About paying out of pocket, I would speak to your financial aid office. They can help you find lenders for loans, and can help you get the best rates. with the default, your going to be in a sticky spot trying to get additional funding from private lenders outside the federal loans. A good loan to try would be the Sallie Mae Signature loan. Also, explain to the aid office that you really want to go to school but that your current situation means that you need to keep your out of pocket costs down .They are there to help. Be polite and treat them with respect, they will go out of there way to help.

why would you even let a school loan go into default, you can always call your lender and ask for deferments what not. if youre going back to school, i beleive full time they will defer your school loans till youre done. call your lender and see they can do for you. if you dont have a job–they can defer than because of financial hardship.