How to Pay Back Defautled Students Loans

The process to pay back defaulted student loans is called loan rehabilitation. It is not offered by all private lenders, but federal direct loans, Federal Family Education (FFEL) loans and Perkins loans can all be rehabilitated. If you have a private loan, you will have to contact your individual lender regarding the opportunity to rehabilitate the defaulted debt. If you have a federal loan that can be rehabilitated, the steps to do so are fairly uniform across the diffetent loan options and fairly simple to accomplish.

Instructions

1

Assure your loan qualifies. You must have a direct loan, FFEL loan or Perkins loan.

2

Inform your lender of your intent to rehabilitate the loan to ensure you qualify.

3

Make nine payments in full within 20 days of the due date within a 10 month period for direct anf FFEL loans. For a Perkins loan, make nine on-time payments.

4

Check the status of your loan with the U.S. Department of Education.

5

Check your credit score to ensure it reflects the fact the loans are no longer in default.