 TITLE: What Is Student Loan Rehabilitation? CONTENT: How Do I Rehabilitate My Student Loans?\n---------------------------------------\nTo pursue student loan rehabilitation, first contact your loan servicer, the private company that collects your payments on behalf of the government. Based on income documentation you provide, the company will assign you a monthly payment amount that's 15% of your monthly discretionary income. Once you make on-time payments for nine months, you can ask for a lower payment than you were initially assigned if you need it.\nIf the government is collecting your debt directly from your paycheck or tax refunds, that may continue during student loan rehabilitation. But these payments won't count as one of your nine required monthly bills. Keep this in mind when you negotiate your payment amount with your loan servicer.\nAt the end of the rehabilitation period, your loan will come out of default, and will be considered in good standing. You'll make payments until the loan is paid off according to the repayment plan you chose through your servicer. Prioritize paying each bill on time to avoid falling behind again. Stay in close contact with your servicer if you need to lower or postpone payments, potentially through forbearance, during periods of financial distress. END