Statute Of Limitation For Defaulted Student Loan
A federal student loan falls into default after a borrower misses 270 days of loan payments. Although the federal government has the right to utilize aggressive collection tactics to recover defaulted education loans and force borrowers to honor their repayment agreements, it also offers a student loan rehabilitation program to help debtors bring their defaulted education loans current.
How the Federal Student Loan Rehabilitation Program Works
Rehabilitation for federal education loans is available for borrowers with DIRECT loans, loans through the Federal Family Education Program (such as Stafford loans), and Perkins loans. The following criteria must be met in order to bring an education debt out of default through student loan rehabilitation:
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