Once you have made the required nine payments, your loans will no longer be in default.To rehabilitate a defaulted Federal Perkins Loan, you must make a full monthly payment each month, within 20 days of the due date, for nine consecutive months.While loan rehabilitation takes several months to complete, you can quickly apply for loan consolidation.However, loan rehabilitation provides certain benefits that are not available through loan consolidation.One way to get out of default is to repay the defaulted loan in full, but that's not a practical option for most borrowers.The two main ways to get out of default are loan rehabilitation and loan consolidation.You must provide documentation of your income to your loan holder.
Find out where to go for information about your Perkins Loan.
However, your credit history will still show late payments that were reported by your before the loan went into default.
If you consolidate a defaulted loan, the record of the default (as well as late payments reported before the loan went into default) will remain in your credit history.
These involuntary payments may continue even after you begin making payments under a loan rehabilitation agreement, but they can’t be counted toward the required nine voluntary loan rehabilitation payments.
Involuntary payments may continue to be taken until your loan is no longer in default or until you have made some of your rehabilitation payments.