Loan Rehabilitation RequirementsMGSLP must approve the rehabilitation payment amount and due date. MGSLP must receive nine on time (received within 20 days of the due date), full monthly payments. Borrowers cannot pay ahead or remit double payments. A lump sum payment equal to the amount of nine monthly payments cannot be used to accelerate the rehabilitation process. Rehabilitation payments must be voluntary payments. Payments obtained through wage garnishment, state tax offset, or federal offset will be applied to your account balance, but cannot be used to rehabilitate a student loan.
Once rehabilitation is completed, MGSLP will turn in an update to all major consumer reporting agencies deleting all reporting from MGSLP. These updates may take 45-60 days to be completed. Please click here for the list of agencies that we report information to and ways to contact them.
Please note that a loan on which a judgment has been obtained or a loan involved in a case where the borrower has been convicted, or plead nolo contendere, or guilty to a crime involving fraud in obtaining federal funds may not be rehabilitated.