Student Loan Rehabilitation
» Looking to consolidate student loans, but behind on your student loan payments? We can help. Call us today at (800) 299-4639.
Student loan rehabilitation refers to the process by which a borrower can bring defaulted student loans 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, NextStudent offers rehabilitation assistance that can help you expedite your student loan rehabilitation. Call us at (800) 299-4639.
Rehabilitation Outcomes
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-sensitive 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
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.
NextStudent offers personalized student loan rehabilitation assistance that can help you expedite rehabilitating your student loans. Call us at (800) 299-4639.
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.
Consolidating Defaulted Student Loans
Consolidating student loans, which bundles all your eligible individual student loans into one single student consolidation loan, can reduce your monthly student loan payments by giving you more time to repay.
Student consolidation loans are eligible for income-sensitive repayment plans that can help keep your monthly student loan payments at a level that’s affordable for you.
The Department of Education won’t allow borrowers to consolidate any defaulted student loans so long as the loans are in default. Before you can consolidate your defaulted student loans, you’ll need to rehabilitate them first.
NextStudent offers student loan consolidation and rehabilitation assistance that can help expedite your student loan rehabilitation and put you into a student consolidation loan that offers lower monthly payments. Call us at (800) 299-5639, or click the “Start Now” button to contact us today.
