How Do You Recover A Defaulted Student Loan?
Defaulting on a student loan can do serious damage to your credit and can lead to wage garnishment and other negative consequences. Fortunately, borrowers who are in default have the option of rehabilitating their loans. Not only does loan rehabilitation stop collection activity on the loan, but it also offers borrowers the opportunity to have negative information removed from their credit report. 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. Explain to your lender that you want to enter into loan rehabilitation. Come to an agreement on a payment that you can afford and that is acceptable to the lender. Make nine payments within 20 days of their due date over a 10 month period. After this, your loan will be rehabilitated. Make sure your loan is actually in default. Contact the guarantee agency that is servicing your loan to find out. If you don’
