Perkins Loan Services
Loan Rehabilitation
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
12 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 12 months.
How to qualify:
- Contact our office to request loan rehabilitation information.
- Sign a rehabilitation payment agreement.
- Make 12 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 9 years to repay your loan if needed.
- All negative credit history of your Perkins loan will be removed.
- You will become eligible for financial aid.
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