Get NY Alternative Documentation of Income For Rehabilitation Repayment Agreement

Rehabilitation is another avenue available to borrowers whose student loans have gone to collections. The process involves borrowers making nine separate voluntary payments in a 10-month period to get their loans back in good standing. The monthly payments are calculated as 15% of your discretionary income.

Student loans don't go away after seven years. There is no program for loan forgiveness or cancellation after seven years. But if you recently checked your credit report and wondered, “why did my student loans disappear?” The answer is that you have defaulted student loans.

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.

Defaulted loans are not eligible for any of our student loan forgiveness programs. But if you take advantage of Fresh Start, you'll get out of default status. Then you'll regain the ability to apply for forgiveness programs, including Public Service Loan Forgiveness.

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.

Yes, you can. If you want to rehabilitate your student loans, you'll need to contact the holder of your loan, which might either be your servicer or a debt collection agency. Check Out: How Often Can You Refinance Student Loans?

The default is reported to credit bureaus, damaging your credit rating and affecting your ability to buy a car or house or to get a credit card. It may take years to reestablish a good credit record. You may not be able to purchase or sell assets such as real estate.

Alternative documentation are documents that serve as proof of income for loans. Examples of such documents are bank statements and payment stubs. Alternative documentation loans are generally more flexible as compared to conventional loans and are generally not verified.