Student Loan Rehabilitation
Toll Free: 1-800-220-4318
If you have defaulted on a Student Loan then Loan Rehabilitation may be an option for you. See also Student Loan Consolidation.
How Rehabilitation Works
Rehabilitation is when you make 9 out of 10 consecutive monthly payments to the collection agency servicing your defaulted student loan. The payments must be agreed to by the agency. Once you have successfully made the payments, your loan is taken out of default. After you are out of default, you could possibly qualify for an income-based-repayment or Pay-as-you-earn repayment plan.
Remove Credit Report Damage
Once you have rehabilitated your loan, the negative damage to your credit report regarding the defaulted loan should be removed. Removing this negative information is a big benefit of student loan rehabilitation.
If your wages are currently being garnished, a rehabilitation may be difficult. The reason is because you will likely be required to make rehabilitation payments in addition to the amount that is already being garnished. A loan consolidation may be a better option if your wages are already being garnished.