Once your loan is rehabilitated, the default status will be removed from your loan.You will regain eligibility for benefits that were available on the loan before you defaulted, such as , and you will be eligible to receive additional federal student aid.In addition, national consumer reporting agencies (credit bureaus) will be instructed to remove the record of the default from your credit history for the rehabilitated loan.
If you want to consolidate a defaulted the Income-Contingent Repayment Plan (ICR Plan).
If you choose the second option (making three consecutive, voluntary, on-time, full monthly payments), you may repay the new Direct Consolidation Loan under any repayment plan you are eligible for.
If you are consolidating a defaulted Federal Perkins Loan, you must also consolidate at least one Direct Loan or FFEL Program loan.
(s) you have or who owns your loan(s), you can get that information from My Federal Student Aid.
My Federal Student Aid will not include information about any private student loans you may have received.
You have several options for getting your loan out of default.These include repayment in full,loan rehabilitation, andloan consolidation.If you can’t afford the initial monthly payment amount, you can ask ED or the guaranty agency to recalculate the payment amount based on your documented income and expenses.Depending on your individual circumstances, this recalculated payment amount may be lower than the payment amount you were initially offered. Notes: To rehabilitate a defaulted Federal Perkins Loan, you must make a full monthly payment each month, within 20 days of the due date, for nine consecutive months.Your required monthly payment amount is determined by the school where you took out the loan, or by ED if the loan has been assigned to ED’s Default Resolution Group.For more information on rehabilitating a defaulted Federal Perkins Loan, contact the owner of the loan.