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A defaulted Perkins loan may be rehabilitated if the borrower requests to rehabilitate the loan and makes an on-time, monthly payment, as determined by the institution, each month for 9 consecutive months.

Loan Rehabilitation Benefits

  • After 9 consecutive monthly payments your account is considered current and returned to regular repayment status. Your repayment period will be extended for up to 9 years.
  • The institution instructs any credit bureau in which the default was reported to remove the default from the borrower’s credit history
  • The borrower regains eligibility for Title IV financial aid, as long as the borrower is otherwise qualified.
  • The loan is once again subject to the terms, conditions, benefits and privileges of the borrower’s original promissory note. 

How to Apply

  • The borrower must request rehabilitation
  • Contact ECSI at 1-888-549-3274
  • A Loan Rehabilitation Agreement must be negotiated, approved and executed before rehabilitation can begin.

A defaulted loan may be rehabilitated one time only.

If one monthly payment is not remitted, the rehabilitation process terminates, and the loan reverts back to the status as before the rehabilitation agreement was initiated.


For more information contact ECSI at 1-888-549-3274.