Rehabilitation can take a federal student loan out of default. It is free, and you should never pay a company upfront to do it.
What rehabilitation is
Federal loan rehabilitation is a program to bring a defaulted federal student loan back into good standing by making a series of agreed, affordable monthly payments on time. Once it is complete, the default is removed from your credit report, although earlier late payments can remain.
It is free
You arrange rehabilitation directly with your loan holder or the U.S. Department of Education’s Default Resolution Group. Check studentaid.gov for current rules, because they can change.
Where RoseFAS helps
Our Student Loan Rehabilitation Guidance session ($79, billed after the session) helps you understand the program, work out a payment that fits your budget, prepare your questions and plan for your credit after rehabilitation.
Watch out
Be cautious of companies that charge upfront fees to “fix” or “forgive” student loans. Report them to the CFPB and FTC.