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Federal Perkins Loan Rehabilitation

If your Federal Perkins Student Loan is in default because you failed to make payments on time, you can pursue rehabilitation of the loan by making six consecutive, on-time monthly payments on the loan. To pursue rehabilitation of your Perkins Loan, contact APSU at (931) 221-7680.


Rehabilitation will:

  • Remove your loan from default
  • Restore the benefits and privileges of your promissory note and return you to regular repayment status
  • Begin a new repayment period of up to 10 years
  • Remove the default from your credit history
  • Restore your eligibility for Title IV funds, including Unsubsidized FFEL loans, Subsidized FFEL loans, Unsubsidized Federal Direct Stafford Loans, Subsidized Federal Direct Stafford Loans, Federal Perkins Loans, FFEL PLUS Loans, Federal Direct PLUS Loans, Federal Pell Grants and Federal SEOG.


All defaulted Perkins Loan borrowers are eligible for rehabilitation, including those who have a judgment rendered on their loan. If a judgment has been rendered on your loan, your rehabilitation payments must be "voluntary." Any payments you make that are equal to the amount you are required to make under the judgment are considered voluntary.

Rehabilitation Details

  • Six consecutive, monthly payments are required.
  • The six payments must be made monthly, even if you were on a quarterly or semiannual repayment plan prior to defaulting.
  • There can be no gaps in the six payments. If you miss a payment, the "streak" is broken and you must start over in the attempt to make the six consecutive payments.
  • The definition of "on time" is at the discretion of the school.
  • The terms of the promissory note do not apply to defaulted loans. The borrower and the school (or its representative, i.e., collection agency) jointly determine the payment amount. There is no minimum payment amount. This is true even if the borrower's promissory note dictates a minimum payment amount.

You can rehabilitate a loan only once, but there is no limit to the number of times you may attempt to make six consecutive, on-time monthly payments.