Student Loan Rehabilitation Calculator
Estimate a potential monthly payment for rehabilitating a defaulted federal student loan. Your loan holder determines the amount and your eligibility.
This calculator is for planning only. Rehabilitation payments and eligibility must be confirmed with your loan holder. Check current requirements at Federal Student Aid.
Take the First Step Toward Good Standing
Federal student loan rehabilitation offers eligible borrowers a way to resolve default by meeting a series of agreed payments. The process can help restore access to federal student aid and certain repayment options.
Start with an estimate, then contact your loan holder to review the payment agreement and requirements.
What Is Student Loan Rehabilitation?
Loan rehabilitation is a federal process for resolving a defaulted eligible student loan. Generally, borrowers make nine voluntary, reasonable and affordable payments within a period of ten consecutive months.
After successful rehabilitation, the default status is removed from the loan’s credit history entry. However, prior late payments can remain on your credit report.
What Can Affect Your Rehabilitation Payment?
How Your Rehabilitation Payment Is Calculated
For many eligible federal loans, a standard rehabilitation payment uses 15% of discretionary income, divided into monthly payments. If that amount is unaffordable, borrowers may ask about an alternative based on income and expenses.
1. Review Your Income
Provide your adjusted gross income or the income documentation your loan holder requests.
2. Account for Family Size
The standard calculation takes into account an income allowance tied to applicable poverty guidelines.
3. Discuss Affordability
If the initial estimate is not affordable, ask whether an alternative payment determination is available.
Who May Qualify for Loan Rehabilitation?
Rehabilitation generally applies to eligible defaulted federal student loans, subject to the loan’s history and current rules. It is typically available only once per loan.
Confirm Your Loan Status
Verify that your federal student loan is in default and ask your loan holder whether rehabilitation is available.
Prepare Your Information
Have your income, family size and essential expense information ready to discuss a reasonable payment amount.
How the Rehabilitation Process Works
Estimate Your Payment
Use the calculator above to prepare for a conversation about an affordable rehabilitation payment.
Contact Your Loan Holder
Confirm eligibility, request the required documents and review the proposed payment agreement.
Complete the Agreement
Make the required payments on time, then review your repayment choices after rehabilitation.
Need Help Understanding Your Next Steps?
Explore repayment and consolidation information before deciding how to address a defaulted loan. For official rehabilitation terms, work directly with your federal loan holder.
Federal student loan rehabilitation can be arranged through the appropriate loan holder without paying StuLo. StuLo is a private service, not affiliated with the U.S. Department of Education.