Written by Tiffany Connors at The Penny Hoarder
Defaulting on your loans can have serious repercussions. Having that mark on your credit report will tank your credit score and make you ineligible for additional federal student aid — also, the government could start to collect the debt by garnishing your wages or income tax return refunds.
Student loan rehabilitation is a nine- to 10-month process for putting your loan back into good standing and removing the mark from your credit report.
But rehabilitation requires a strict payment schedule and you don’t get a second chance, noted Alexandra Wilson, a Certified Financial Planner and student loan expert at SmartPath. So you should be prepared to commit to rectifying your financial situation.