The new COVID 19 Stimulus package has brought about several great reasons for you to Rehabilitate your Delinquent student loans now.  Seriously, there has never been such a gift from the government and will probably never will be again.

Under the new law, the government is giving everyone 6 months of no payments on their student loans.  This is not just great…this gives everyone who is delinquent on their student loans an opportunity to rehabilitate their student loans with just 3 monthly payments instead of 9.

Here is how it works…..

To rehabilitate your student loan, you need to negotiate a new payment plan with your loan servicer.  You then need to make 9 payments in a 10 month period.  However, from April through October 2020, the government is not requiring student loan borrowers to pay their government student loan debts.  Hence, you only need to make 3 payments in a 9 month period to rehabilitate your loans. Regardless of the amount of the payment (we can negotiate the payment down as low as possible), you still have no payments to make until October 2020.

Can this get any better?  Yep!!!!

Go into a Student Loan Rehabilitation and after you make your 4th payment, we can get the tax offset flag released from your account.  Hence, if you are flagged for a tax garnishment, we can get that garnishment released and your money returned to you.

But wait…theres more….

After 5th rehab payment, if you are being garnished of if there is a wage garnishment flag on your account, the flag will be lifted.  The government can garnish up to 15% of your take home pay without a judgment.  Other creditors have to get a judgment.  Our government does not have to bother with this.  It can simply garnish your wages.

Wait for it…..

After the 6th rehab payment, all of your Title IV benefits will be reinstated.  This means you can get new student loans, if you choose.  As silly as this may sound, this could be an excellent opportunity for you to consolidate your student loans.  If you have any that are delinquent, you can consolidate them with a current loan.  If you have no student loans in current status, this may the chance to get a new one and consolidate them into a new and CURRENT loan.

 And your credit reports will love you for this…

With a student loan rehabilitation, your defaulted student loans will be reported as current.  How nice it would be to get those defaults off of your credit report.  Just one caveat – the only thing that the government does not promise is that it may not remove the late remarks.  However, in our experience, that these are typically removed as well.  No promises on this.  The only guarantee is that they will remove the default status.

Have questions about how to qualify for a rehabilitation or consolidation?  Call us at Student Loan Medix toll free at (888) 706-0440 for a free, no obligation consultation.  You can also email for more information.  We are a division of Michigan Consumer Credit Lawyers.  We are a Michigan based law firm.  Get the straight answers from us…on us.

Gary Nitzkin

Gary Nitzkin, Esq.
Licensed in Michigan only