The United States Department of Education has amended its regulations
governing the Perkins Loan Program to provide opportunity for
rehabilitation of defaulted loans (Code of Federal Regulations 34
CFR 674.39). This amendment was published in the Federal
Register, Volume 64, Number 208, October 28, 1999, and it becomes
effective on July 1, 2000. It provides that a defaulted loan may
be rehabilitated if the borrower: (a) requests to rehabilitate the loan,
and (b) makes an on-time, monthly payment, as determined by the
institution, each month for twelve consecutive months.
The benefits of loan rehabilitation include:
·
The institution will instruct any credit bureau to which the
default was reported to remove the default from the borrower’s credit
history.
·
The loan will be brought current, and returned to regular
repayment status. Your Repayment Period will be extended for up to nine
(9) additional years.
·
The loan is once again subject to the terms, conditions, benefits
and privileges of the borrower’s original promissory note. These
include eligibility for the balance of deferments, forbearance,
cancellations and flexible repayment options, as well as the
responsibilities of making regular monthly payments and keeping the
institution informed of address changes.
·
Borrower re-establishes Title IV student financial assistance
eligibility, as long as the borrower is otherwise qualified.
How to apply:
·
Borrower must request loan rehabilitation.
- Call (920) 424-1336 or Send written request to:
- University of Wisconsin Oshkosh
- Student Loan Office
- 800 Algoma Blvd
- Oshkosh WI 54901
·
A Loan Rehabilitation Agreement must be negotiated, approved and
executed before the loan can be rehabilitated.
A defaulted loan may be
rehabilitated one time only! If
one monthly payment is not remitted, the rehabilitation process
terminates, and the loan reverts back to the status as before the
Rehabilitation Agreement was initiated.
If you have any questions regarding this new program, please
contact the UW-Oshkosh Student Loan Office at (920) 424-1336.
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