Slide 14 of 15
Loan Rehabilitation
- A loan is considered in default if it 30 days past due, and defaulted loans are reported to the credit bureau monthly.
- The U.S. Department of Education allows borrowers an opportunity to have those delinquent reportings removed from credit history.
- 9 consecutive on-time monthly payments must be made; payment to be made is based upon the delinquent balance outstanding and the loan's original monthly payment.
- Only loans with no legal judgment against them are eligible for this rehabilitation opportunity
- The delinquent reports will be removed once the 9th on-time payment is received
- A defaulted loan may be rehabilitated only once; if the same loan reaches default status again, rehabilitation is no longer possible
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rev. 05/19/2017