Before you get to the terms, you will be reminded again of the heart of your agreement: once the rehabilitation requirements are complete, Trellis will attempt to place your loan with a participating rehabilitation lender or the U.S. Department of Education. Trellis currently has regular monthly sales to remediation lenders; However, the purchase of your loan for recovery is left to the lender`s discretion and there may be periods when no lender participates in Trellis` rehabilitation program or when no lender is willing to purchase your loans on terms that Trellis deems economically appropriate. In this case, you may need to continue your monthly payments until a turnaround-based lender or the U.S. Department of Education is available to purchase your loan. (2) After the completion of the loan rehabilitation phase, financial and economic educational materials, including information on debt management. In the past, it was very common for collectors to tell you that you had to pay a prohibitive amount. It was wrong at the time and it`s still wrong. The law says you only have to pay what is reasonable and affordable.
There is no minimum amount to be calculated by the loan holder. The current rules should be much more effective for borrowers. Do I need to consolidate or rehabilitate my student loan? PDF, 131 KB. « MORE: Delays in payment for student loans: what it is and how to recover (iii) The guarantee agency considers the borrower`s reasonable and affordable payment amount to be equal to 15% of the amount corresponding to the borrower`s Adjusted Gross Income (AGI) that exceeds 150% of the amount of poverty applicable to the size of the family and the state of the borrower , with the exception of 12% that, if this amount is less than $5, the borrower`s monthly rehabilitation payment is $5. Your rehabilitation allowance was calculated either based on the size of your family and your adjusted gross income based on your tax return or financial situation (i.e.: Your discretionary income after calculating your monthly income, expenses, country of residence and size of family. Pay as needed. Rehabilitation of student loans requires you to make nine one-time payments within 20 days of maturity within 10 months. Payments must also be voluntary. For example, the money that was seized from your tax refund would not be counted as a payment. Remember that due to the current automatic leniency for federal student borrowers, each of the nine months of non-payment from March to December 2020 will count for the rehabilitation of student loans.
4. After the rehabilitation of the loan, the borrower receives all benefits of the program from the date of rehabilitation, including all remaining deferral conditions under Section 428 (b) (1) of the Act. For any loan that will be rehabilitated on or after August 14, 2008, the borrower will not be able to rehabilitate the loan if the loan is defaulted after the refurbishment. You can get the federal aid authorization before you complete the rehabilitation, as long as you make six reasonable and affordable monthly payments. However, you need to complete rehabilitation to get out of the default setting. (ii) If the guarantee agency was unable to sell the loan, the guarantee agency must assign the loan to the secretary. (ii) The previous loan holder must, within 30 days of receiving the notification, require the guarantee agency to require any consumer reporting agency to which the insolvency debt or other equivalent set of data has been declared to remove these records from the borrower`s credit history.