The federal loan rehabilitation provision allows defaulted Perkins borrowers to bring their loans current and remove negative loan history from the credit bureaus. This provision can only be used one time which means that if a rehabilitated loan returns to a defaulted status, the "rehab" option is no longer available. Please note: A lump sum payment equivalent to 9 monthly payments may not be made in order to meet the requirements of the rehabilitation. The minimum amount of time in which a loan can be rehabilitated is 9 months.
How to qualify
• Contact our office to request loan rehabilitation information.
• Sign a rehabilitation payment agreement.
• Make 9 consecutive and on-time monthly payments.
When these qualifications are met
• You regain all loan benefits. The terms and conditions of the original promissory note(s) are reinstated.
• You have an additional 10 years to repay your loan if needed.
• The Credit Bureau's will be notified to remove the default from the borrower's credit history.
• You will become eligible for financial aid.