04.28.09 | Rehabilitating Your Federal Loans
Many students have seen their federal student loans fall into a default status in recent months, and as a result are having their tax return money withheld and applied toward the outstanding balance. The only way to avoid your tax return dollars being withheld year after year is to get your loans rehabilitated.
Rehabilitation is simply the process of bringing a loan out of default and removing the default notation on your credit report. To rehabilitate your Stafford loans you must make at least 9 consecutive payments of an agreed amount within 20 days of their monthly due dates over a 10 month period to the U.S. Department of Education.
To rehabilitate your Perkins loan, you must make 12, on-time, monthly payments.
Five most recent Stafford loan help blog posts:
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