How to Get a Rehabilitation Loan
Getting a rehabilitation loan for a student loan that is in default requires some planning and preparation. A rehabilitation loan is a great way for someone whose student loan is in default and is having trouble making minimum payments to get out from under an onerous default situation. Although a loan rehabilitation will not eliminate your original loan obligations, it can provide such benefits as deleting your default status from the national credit bureaus, and will allow you to enjoy once again all of the privileges you had under the original loan, such as loan deferment and forbearance.
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Instructions
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Verify which student loan is in default. The U.S. Department of Education has different requirements for loan rehabilitation for each of the major loan programs, including Direct Loan, FFEL and Perkins loan. If you are not sure which loan is in default contact the Department of Education at 1-800-433-3243 or by email at drghelp@ed.gov.
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Calculate how much you can afford to pay on a monthly basis under the terms of a loan rehabilitation. You will need to establish a price range before you begin the consultative process with Department of Education for your loan rehabilitation. Under most loan rehabilitation programs you will be required to make nine voluntary consecutive payments.
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Contact the U.S. Department of Education to arrange for a loan rehabilitation at 1-800-433-3243 or 1-800-621-3115, or by email at drghelp@ed.gov. State your desire to participate in a loan rehabilitation program based on the monthly payments you calculated. Be sure to provide the department with information concerning your defaulted student loan.
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