Effective 7/1/00, the United States Department of Education amended its regulations governing the Perkins Loan Program to provide opportunity for rehabilitation of defaulted loans. A defaulted loan may be rehabilitated if the borrower: (a) makes an on time, monthly payment, as determined by the institution, each month for nine consecutive months, and (b) requests to rehabilitate the loan.

Benefits of loan rehabilitation

  • Loan is returned to regular repayment status.
  • Borrower regains the balance of benefits and privileges of the original promissory note-including eligibility for deferments, forbearance, cancellations and flexible repayment options.
  • Removal of default from the borrower's credit history.
  • Borrower re-establishes Title IV student financial assistance eligibility.

How to apply:

  • A Loan Rehabilitation agreement must be completed and signed by the borrower. The agreement must be sent to the Marquette University Office of Student Loan Accounts and Collections for approval.
  • A representative of MUSLAC will contact you with repayment terms.


A Defaulted Loan May Be Rehabilitated Only One Time!

If one monthly payment is not remitted, the rehabilitation process terminates, and the loan goes back to the status as before the loan rehabilitation agreement.

Download Rehabilitation Form