Student Loans Rehabilitation Program
If you have defaulted student loans, you may be able to rehab them. Rehabilitation is a process that could make your student loan more affordable and get back into good standing.
Who can rehabilitate a defaulted student loan?
To be eligible for the student loan rehabilitation program, you must:
- Be a U.S. citizen or permanent resident;
- Be a student loan borrower who has defaulted on your loans;
- Have not been discharged from your debts in bankruptcy, and;
- Be at least 16 years old (the age of majority varies by state).
Defaulted student loans can be rehabilitated only once.
You can rehabilitate your defaulted student loans only once. If you rehabilitate and then default again, you will not be able to rehabilitate again.
What are the benefits of loan rehabilitation?
Rehabilitation offers benefits such as:
- Getting your loans out of default. If you’re in default, you may not be able to qualify to get your loan out of default by paying off your loans in full. Instead, rehabilitation allows you to make nine on-time payments over 10 months and then go back into repayment status (this is different from consolidation).
- Getting back on track with payments. If your payment history has been less than stellar or if it’s been several years since you’ve made a payment at all, rehabilitation can help get those delinquencies off of your credit record—which will ultimately improve the chances that lenders will approve new loans when the time comes for them. This is good news if you want a better chance at qualifying for mortgages or car loans later on down the road!
- Consolidating multiple federal student debts into one loan serviced by FedLoan Servicing (FIS), our preferred servicer partner for this program
What is the process for rehabilitating my loans?
To get your loans rehabilitated, you must:
- Contact your loan servicer. Your loan servicer is the company that manages the repayment of your student loan. You can find out who your servicer is by checking the National Student Loan Data System (NSLDS).
- Complete the rehabilitation application.
- Sign a rehabilitation agreement. This agreement gives you permission to make interest-only payments until you’ve paid off the full amount of your debt, which may take up to 10 years. If you don’t finish paying off your entire balance within this time frame, any remaining principal balance will be considered an unpaid collection account with serious consequences for credit scores and other important financial decisions such as buying a house or renting car insurance policies. In short: Don’t skip this step!
- Make at least one payment after signing on as part of their Rehabilitation Program prior to receiving their first bill from them in order for it actually count towards their total balance owed rather than being just another missed monthly obligation which will further delay completion date if not handled correctly right away by contacting federal student loan servicers directly instead of relying solely upon email notifications sent via mail delivery only service providers like USPS/UPS delivery services etcetera without actually needing anyone else involved such as agents working under contract with private companies like FedEx Express Inc., UPS Supply Chain Solutions Inc., “FedEx Mailbox Etcetera”…etcetera
You can make your student loan more affordable and get back into good standing by rehabilitating it.
If you rehabilitate your student loan, you can get back into good standing and put the default status behind you. You’ll also find that repaying your loan through rehabilitation is much more affordable than other payment options.
In conclusion, student loans are a great way to pay for college. However, if you default on them, it can be difficult to get back into good standing without paying huge amounts of interest and fees. The rehabilitation program is one option that allows you to reduce your monthly payments and get back into good standing. If you have defaulted federal student loans, contact us today so we can help!