Office of Accounting
Perkins Loan Services
The federal loan rehabilitation provision allows defaulted Perkins borrowers to bring their loans current and remove negative loan history from the credit bureaus. This provision can only be used one time which means that if a rehabilitated loan returns to a defaulted status, the "rehab" option is no longer available. Please note: A lump sum payment equivalent to nine monthly payments may not be made in order to meet the requirements of the rehabilitation. The minimum amount of time in which a loan can be rehabilitated is nine months.
After rehabilitation, collection costs on a Perkins Loan may not exceed 24 percent of the unpaid principal and accrued interest as of the date following the ninth consecutive payment.
How to qualify:
- Contact our office to request loan rehabilitation information.
- Sign a rehabilitation payment agreement.
- Make nine consecutive and on-time monthly payments.
- All past-due interest and late fees must be paid current.
When these qualifications are met:
- You regain all loan benefits. The terms and conditions of the original promissory note(s) are reinstated.
- You have an additional nine years, three months to repay your loan if needed.
- All negative credit history of your Perkins loan will be removed.
- You will become eligible for financial aid.