Private College Student Loan

What is the definition of rehabilitation on student loans, and how does it work?

Hi. I want to go back to college but I have to take care of student loans first. I was told that if your loans go into default, you have to contact the creditor handling the student loans and tell them you what to get into a rehabilitation program? What is rehabilitation and how does it work? I tried asking my loan officer from my old college about it and he wouldn't give me a straight answer. Please let me know. Thank you.

Public Comments

1. You must do this through your lender... not your school. Loan rehabilitation is when you make 9 months of payments on your federal defaulted student loans. The payments have to be reasonable and on time and you also have to do so WILLINGLY. Nine months later, your loans are no longer in default and you can get financial aid again to go back to school. Here are the details and the link. These are for FEDERAL loans only. Private loans have no such process.
2. friend, search for the web using yahoo search engine to get answer
3. Ok here we go: #1 - there is another option that much faster (see answer #3 after reading #2) #2 - Rehab is when you are defaulted on your student loans and you want to get back into good standing. You would contact whomever is sending you your monthly bill, either the lender you got your loan from or a collections agency. You would request to go into a rehab program with a (fair and affordable monthly payment) the collections agency will lie 100 ways from sunday about it but its the law and your right. That mo payment is based off a financial write up where you show how much money you have left after bills. What ever that number is, is the fair payment. If its 0 or negative a $20 payment will suffice. You have to make this payment for 9 months ON TIME. if your a day late, too bad. Once completed the default will be lifted and any garnishment will be lifted as well and you can start to pay on your loans normally again. 3. You can restructure your loans with a company like student loan recovery. They will pay off your student loans and reissue you new once with a different federal lender. This takes them out of default and garnishment and back into repayment. Takes about 30-60 days. Then they would get you on a income based repayment plan that would make your monthly payments something you could afford. If you cant afford anything they would show you how your entitled to placing your loans on hold for up to 3 years without payments. check them out www.studentloanrecovery.com 1-877-865-9212