Rehabilitation is a program to remove your student loan(s) from a default status. To rehabilitate your defaulted student loan(s), you must make nine voluntary, on-time, full monthly payments during a period of 10 consecutive months.
After successfully completing the rehabilitation program:
- Your loan(s) will no longer be considered to be in a default status.
- The default status reported by your loan holder to the national credit bureaus will be deleted.
- You will be eligible for the same benefits that were available on the loans before the loans defaulted. This may include deferment, forbearance and Title IV eligibility.
- Wage garnishment ends and the Internal Revenue Service no longer withholds your income tax refund.