How to rehab school loans In default
1. Contact your loan holder/collection agency. Ask to enter a rehabilitation agreement.
2. Go on the website , and print off the loan rehab pdf and fill out the paper work. You will also need attachments of paystubs and expenses for the department of edu to determine your monthly payments.
3. On the website there is a fax number and mailing address I recommend you do both to be extra sure they received your app.
⚠️ Note: You can only rehabilitate a loan once.
4. After making 6 on time payments you will be eligible to apply for aid to go back to school. After 9 payment loans will be reinstated and in good standing.
Disclaimer: laws are changing everyday if you have loans in default I would suggest that you call and inquire about them before it’s too late. Having federal loans in default can lead to having garnished paycheck and tax returns also make you ineligible for future aid if you want to continue your edu.
If you owe on loans 50k or more federal government can not saying they will but they can put a black on your US passport.
I hope this helps
Just a reminder that the government can garnish paychecks and tax returns if loans are in default. Act fast!