Student loan rehabilitation refers to the process by which a borrower can bring defaulted student loans out of default and back into good standing.
The rehabilitation process typically involves making a certain number of consecutive on-time payments on the defaulted student loan. Your lender or servicer can work with you to set up a monthly student loan rehabilitation payment plan.
Although the rehabilitation process for federal college loans typically takes around 10–12 months, Student Loan Debt Helpers offers a student loan restoration program that can help you get out of default in as little as 60–90 days.
When you default on a federal student loan or federal parent loan, you become ineligible for any further federal financial aid so long as your loan remains in default. You also become subject to having your wages garnished and your income tax refunds withheld.
By rehabilitating your federal student loans, you can restore your financial aid eligibility and put an end to wage garnishments and other collection activities.
- Clear your student loan default from your credit report.
- Stop wage garnishments and withholdings of your income tax refunds.
- Get access to income-based student loan repayment plans.
- Restore your eligibility for federal student financial aid.
- Regain deferment, forbearance, and student loan consolidation options on your rehabilitated loans.
Getting Out of Default
The Student Loan Rehabilitation Process
To rehabilitate your federal student loans, you’re generally required to make nine on-time payments over a 10-month period to the U.S. Department of Education.
An on-time payment is defined as a full voluntary payment made within 20 days of the payment due date. Payments that are seized from you involuntarily, such as through a wage garnishment or a legal proceeding, don’t count toward your nine-payment quota.
The Department of Education offers borrowers a one-time opportunity to rehabilitate defaulted federal college loans. If you redefault on a rehabilitated federal student loan or federal parent loan, you won’t be able to rehabilitate a second time.
The Student Loan Debt Helpers student loan restoration program offers an alternative path to getting out of default. Our loan restoration program can help you get out of default in as little as 60–90 days, as opposed to the 10-month rehabilitation process.
As with a student loan rehabilitation, getting out of default through our student loan restoration program will help you to stop tax refund and wage garnishments†, to get renewed payment-deferment and forbearance options for your student loans, and to regain your eligibility for federal financial aid‡.
Unlike student loan rehabilitation, the student loan restoration process won’t clear your student loan default from your credit report. However, your defaulted student loans will be paid off, and you’ll no longer be considered to be actively in default on your federal student loans.
† The termination of any wage garnishment orders, I.R.S. tax offsets, or communications from debt collectors will be dependent on your successful completion of the student loan restoration process.
‡ Student Loan Debt Helpers does not award any federal student aid and makes no guarantees as to your eligibility for any educational financial aid, any specific financial aid award amounts, or financial aid award dates. If you have become ineligible for Title IV federal student aid due to being in default on federal education loans, then the re-establishment of your eligibility for Title IV federal student aid will be dependent on your successful completion of the student loan restoration process. However, eligibility for Title IV federal student aid is also determined by other federal qualification requirements, which you will also need to meet and with which Student Loan Debt Helpers offers no assistance.