A defaulted loan may be rehabilitated if the borrower:
- makes an on-time monthly payment, as determined by the institution, each month for nine consecutive months and
- requests to rehabilitate the loan.
If one monthly payment is missed, the rehabilitation process terminates and the loan goes back to the status as before the loan rehabilitation agreement. A borrower may apply for rehabilitation as many times as it takes to complete a successful rehabilitation. However, a defaulted loan may only be successfully rehabilitated once.
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 for approval to Marquette's Office of Student Loan Accounts and Collections.
- A representative from Marquette's Student Loan Accounts and Collections office will contact you with repayment terms.
- Download rehabilitation form
