To rehabilitate a Direct or FFEL Loan you must, agree in writing to make nine payments. The payments must not be more than 20 days after the due date, and be made within a period of 10 consecutive months. Under your loan rehabilitation agreement, your monthly payment will generally be 15% of your discretionary income (the payment could be as low as $5).
Note: Involuntary payments (such as wage garnishment) do not count toward your nine required payments. Also, involuntary payments could continue to be withheld until your loan is actually out of default.
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