- 1). Check and see whether your loan is actually in default. Contact your loan servicing agency, or the U.S. Department of Education, at 1-800-433-3243 to make sure you are actually in default.
- 2). Explain to your lender that you want to enter into loan rehabilitation.
- 3). Come to an agreement on a payment that you can afford and that is acceptable to the lender.
- 4). Make nine payments within 20 days of their due date over a 10 month period. After this, your loan will be rehabilitated.
- 1). Make sure your loan is actually in default. Contact the guarantee agency that is servicing your loan to find out. If you don't know which guarantee agency is servicing your loan, call the U.S. Department of Education at 1-800-433-3243 to find out.
- 2). Tell the guarantee agency that you want to enter into a loan rehabilitation program.
- 3). Negotiate with your guarantee agency for a payment that is both acceptable to the agency and that you can afford.
- 4). Make nine payments of the agreed-upon amount over a period of 10 months. All payments should be made within 20 days of their due date.
- 1). Check with your school to make sure that your loan is actually in default. Only loans that are in default can be rehabilitated.
- 2). Explain to your school that you want to enter into a loan rehabilitation program.
- 3). Work with your school to determine a payment that is both acceptable to the school and that you can afford.
- 4). Make nine on-time monthly payments, after which your loan will be rehabilitated.
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