If you know anyone who has a federal student loan in collections or in default, this is great news that they need to know!
As of June 2022, the student loan rehab program no longer takes 9 months of payments to get it off your record and off your credit report.
For the first time ever, they will remove the collection/default status off your credit report in as quick as 1 to 2 months!
Today, I had a telephone conversation with Representative Angelica at Student Aid who explained the process to me:
- Call (800) 621-3115 to get your personal, individualized rehab plan. Have your tax returns or income documentation ready, because your new monthly payment will be based on your income and financial situation.
- Submit the form they provide and your documentation. They will guide you through the process.
- As soon as your submission is verified and accepted, they clear the default status off your Credit Alert Verification Reporting System (CAIVRS), which is used by the credit bureaus and by mortgage lenders. Thus, they clear your credit report of the default status for you — and it can be done in two months or less!
Note: This information is not on their website. During hold time, the message states they are updating their website as fast as they can. On the telephone, Angelica told me you MUST CALL to get this rehab program, and it cannot be done online.
Thank you for reading this post and passing it on to others who need the information.