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Rehabilitation

Started by AJ2255, October 30, 2018, 03:54:20 am

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AJ2255

My FFEL student loans have been in default for 7 years. I want to start the rehabilition process. I have almost $10,000 saved up from working but I won't be "on the books" at my job until March. (seasonal landscaping, although I may land another job for the few months until landscaping picks back up in March). I'de like to make the smallest payment amount possible during the rehabilition and then launch an aggressive attack on my loans using the Snowball Method. But how do I negotiate or prove my income to make payments if im not "on the books" until March?

TheCollegeInvestor

Here's the steps to get out of default: https://thecollegeinvestor.com/22174/student-loan-default/

Rehabilitation will require 9 payments before you can get on an income-driven repayment plan. You need to see what these payments would be and make sure you can afford them before you start. The worst thing you can do is start the process and then stop after 3-4 months.

AJ2255

Right, but what can I do to make the 9 rehabilitation payments as low as possible?

TheCollegeInvestor

Not much - it's based on a formula. You can fill out this form here and see: https://ifap.ed.gov/dpcletters/attachments/GEN1409OMB1845n0120RAP.pdf