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Loan rehabilitation is the process in which a borrower may bring a student loan out of default by adhering to specified repayment requirements. This process is different and separate from Reinstatement of Title IV Eligibility.

Complete rehabilitation by making on-time payments after the payment suspension ends. You need to make nine on-time monthly payments (or payment credits) in order to successfully complete loan rehabilitation. During the COVID-19 emergency relief period, paused payments count toward loan rehabilitation.

The PSLF Program forgives the remaining balance on your Direct Loan after you've made the equivalent of 120 qualifying monthly payments while working full time for a qualifying employer.

Required Documentation Copies of your two most recent pay stubs (they must be dated within the past 90 days). Signed copy of your federal 1040 tax return for the most recent tax year (both pages) or a tax transcript form provided by the IRS (no signature required); you can request your tax transcript online.

Once you've contacted your federal loan servicer and it's determined that you're eligible for rehabilitation, you'll receive a written rehabilitation agreement within 15 days. If you agree, you'll sign and return the agreement. You'll have 10 consecutive months to make your required payments.

How much will my credit score increase after the student loan default is removed? Borrowers have shared that their credit scores increased by 75 points after the student loan default status was removed from their credit reports. FICO score increased 57-74 points. FICO score increased by 75 points.