If you are wishing to eliminate your bad credit record after going into default then rehabilitation is the way to do it!
A borrower may rehabilitate a defaulted Perkins Loan by making 9 consecutive on-time payments. Southern Utah University has established a rehabilitation program and will notify all borrowers with defaulted loans of the option to rehabilitate and the advantages of rehabilitation.
Borrowers may not rehabilitate loans on which the holder has obtained a judgment.
The rehabilitation payments should be sufficient to satisfy the outstanding balance on the loan within the 10-year repayment period.
Within 30 days of receiving the borrower’s last on-time consecutive monthly payment, your account will:
After rehabilitating a defaulted loan and returning to regular repayment status, a borrower regains the benefits and privileges of the promissory note, including deferment and cancellation.
If you choose to rehabilitate a defaulted loan and then fail to make 9 consecutive on-time payments, the rehabilitation is unsuccessful, but you may still make further attempts to rehabilitate the defaulted loan. Also, if you successfully rehabilitate your defaulted loan and maintain good standing on the loan, then you may continue to attempt to rehabilitate other defaulted Perkins loans. However, if you successfully rehabilitate a defaulted loan, but the loan later returns to default, you may not attempt to rehabilitate that loan again or any other defaulted Perkins loan.
If you wish to rehabilitate your loan, please contact the Loan Collection Office to get the necessary forms and for complete rules and regulations on the matter.
Or from the web at: http://www.suu.edu/ss/loans/collections6.html
Southern Utah University
Loan Collection Office
351 West University Blvd, AD207
Cedar City, UT 84720
Phone: (435) 586-7728
FAX: (435) 865-8064