Look to Rehabilitation to Recover from Student Loan Default

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Best Education loan
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Look to Rehabilitation to Recover from Student
Loan Default
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• There are enough lower payment, deferment and
  other options available for federal student loan
  borrowers that one would hope defaults on these
  loans would be a rare occurrence.
• Unfortunately, statistics show that more than 14
  percent of federal student loan borrowers who
  left or completed school in 2010 and more than 18
  percent of loans for students who left or
  completed school in 2008 had defaulted by 2014?.
• The numbers get grimmer when you start looking
  at individual school types, with some having
  lifetime default rates as high as 40 percent.

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• Rehabilitation
• If your credit score is a priority,
  rehabilitating your defaulted student loan may be
  a good choice.
• Under this option, the borrower agrees to a
  reasonable payment amount with the loan holder
  and makes that payment on-time for nine
  consecutive payments.

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• The Fine Print
• Like many student loan rules, there are a few
  details of rehabilitation you need to be aware
  of.
• First, these federal loans? can only go through
  the rehabilitation process once per loan unless
  the prior rehabilitation occurred before Aug. 14,
  2008.
• Also, if you miss a payment during the process,
  you'll most likely be required to start all over
  again.
• A borrower can become eligible for additional
  federal aid after the sixth on-time payment, but
  will lose it again if they miss future payments
  or don't complete the rehabilitation process.

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• A Word of Caution
• While the current rehabilitation rules help make
  it easier for borrowers to take advantage of the
  program, it's not necessarily a good idea for
  everyone. A borrower who has to use the financial
  hardship form to find an affordable payment
  amount may be laying a path for failure down the
  road.

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• Consider Consolidation
• If rehabilitation is not an option, consolidation
  could be. Defaulted federal loan borrowers can
  generally have their loans released for
  consolidation after making a short satisfactory
  repayment agreement with the loan holder.
• This could take some additional time if the loan
  is under administrative wage garnishment or
  litigation.

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• Pay In Full
• While not an option for most borrowers, paying
  the loan in full is another way to resolve a
  defaulted student loan.
• The Best Education loan will show as paid in full
  on the borrower's credit report, but will still
  show the past default and delinquencies for the
  normal credit history time frame.
• While there is no guarantee, paying the loan in
  full may allow the borrower to request a
  reduction in collection costs.
• Source http//bit.ly/1RIlpZQ

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