06.15.09 | How do I rehabilitate my Stafford loan?
Rehabilitation is the process of bringing a loan out of a default status and removing the default notation on a borrower’s credit report. To rehabilitate a Direct or a FFEL Loan, you must make at least 9 full 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 a Perkins Loan, you must make 12, on-time, monthly payments of an agreed amount to the Department. Rehabilitation terms and conditions vary for other loan types and can be obtained directly from the loan holders.
To contact the Department of Education regarding loan rehabilitation call 800-621-3115.
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