Student Loan Rehabilitation: Understanding Its Benefits and Timing
What Is Student Loan Rehabilitation?
Student loan rehabilitation is a process designed to help borrowers recover from default on their federal student loans. It involves making a series of agreed-upon payments and can potentially restore your loan to good standing.
When to Use Student Loan Rehabilitation
Consider student loan rehabilitation if you find yourself in default. This method not only removes the default status but also helps reinstate eligibility for federal benefits such as income-driven repayment plans.
Key Benefits of Rehabilitation
- Restoration of good credit standing.
- Access to federal student aid again.
- Improved repayment options.
By choosing rehabilitation, borrowers can alleviate some of the financial stresses associated with defaulting on their loans.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.