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
- 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
- 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