Student Loan Rehabilitation

Rehabilitation is a program you can take advantage of to remove your student loans from a default status. To rehabilitate your defaulted student loans, you must make nine voluntary, on-time, full monthly payments during a period of 10 consecutive months.

After you’ve successfully completed TG’s rehabilitation program, TG will delete its reporting of the default to all national consumer reporting agencies, and will request that the lender that filed the default claim on your loans also remove the default status from your credit report. You’ll regain eligibility for any remaining deferments and forbearances for which you may be eligible, and you’ll regain eligibility for additional federal student aid, provided that you have no other student loans in default and meet all other eligibility criteria.

Upon rehabilitation, TG will try to place your loan with another organization. TG currently has regular monthly sales to rehabilitating lenders; however, the purchase of your loan for rehabilitation is at the discretion of the lender, and there may be periods during which no lenders are participating in TG’s rehabilitation program or during which no lender is willing to purchase your loans on terms that TG considers commercially reasonable. In that case, you may be required to continue making scheduled payments until a rehabilitating lender purchases your loan.

Generally, upon completion of the rehabilitation program, your loans will retain the original terms and interest rate, and you’ll be given the same maximum repayment period you received when you initially took out the loan, minus the nine monthly payments you made under your Rehabilitation Agreement — that is, nine years and three months to repay the remaining balance of your loans, or up to 29 years and three months to repay the remaining balance of your Consolidation loans. The nine monthly payments you made to rehabilitate your loans are considered the first nine months of the rehabilitated loan’s repayment period. If you need to make lower monthly payments, Income-Based Repayment plans may be available to you; check with your lender to determine whether you qualify.

Qualification

To qualify for rehabilitation:

  • You must establish a satisfactory repayment arrangement and make nine on-time, voluntary, full monthly payments. Payments obtained by state offsets or federal Treasury offsets, wage garnishment, trustee payments, or income or asset execution don’t satisfy this requirement.
  • TG will determine your monthly payment amount based on either a required federal methodology or your unique financial circumstances. You must provide TG with the financial information necessary to calculate your payment amount.
  • You cannot pay ahead or remit double payments to accelerate the rehabilitation process.
  • The account balance at the time of the rehabilitation must be at least $1,000.

Loans for which a judgment has been obtained, or for which you have been convicted of, or have pled no contest or guilty to, a crime involving fraud in obtaining federal student aid funds are not eligible for rehabilitation.

Rehabilitation process

Once your loans are set up for rehabilitation, TG will mail its Rehabilitation Agreement to you.  You must fill out the agreement completely and return it to TG; we won’t accept incomplete agreements. Return the signed agreement and provide TG with documentation verifying the financial information you provided to determine your payment amount.

Once the payment criteria above have been met, a participating lender will purchase the original loans, and you will continue to make monthly payments to the new lender.

TG’s current rehabilitation lenders are:

Aspire Servicing Center (First Convenience Bank (FCB) — Killeen)
P.O. Box 659701
West Des Moines, IA 50265-0970
Phone: (800) 243-7552

Aspire Servicing Center (Fort Hood National Bank (FHNB))
P.O. Box 659701
West Des Moines, IA 50265-0970
Phone: (800) 243-7552

Nelnet (Credit Human Federal Credit Union (CHFCU)  Previously known as SACU)
P.O. Box 2970
Omaha, NE 68103-2970
Phone: (888) 486-4722

AES (SunTrust Bank)
American Education Services
Harrisburg, PA 17130-0001
Phone: (800) 233-0557

Previously used rehabilitation lenders and servicers:

ACS Education Services (East West Bank)
P.O. Box 371834
Pittsburgh, PA 15250-7834
Phone: (800) 835-4611

ACS Education Services (Homebanc N.A.)
P.O. Box 371834
Pittsburgh, PA 15250-7834
Phone: (800) 835-4611

ACS Education Services (STHEA/COSTEP)
P.O. Box 371834
Pittsburgh, PA 15250-7834
Phone: (800) 835-4611

AES (College Savings)
Harrisburg, PA 17130-0001
Phone: (800) 233-0557

AES (Edsouth)
American Education Services
Harrisburg, PA 17130-0001
Phone: (800) 233-0557

EdFinancial Services (NTHEA)
P.O. Box 36014
Knoxville, TN 37930-6014
Phone: (800) 337-6884

Georgia Student Finance Authority (Edsouth)
P.O. Box 116221
Atlanta, GA 30368-6221
Phone: (888) 414-2692

Iowa Student Loan (First Convenience Bank (FCB) — Killeen)
P.O. Box 659701
West Des Moines, IA 50265-0970
Phone: (800) 243-7552

Iowa Student Loan (Fort Hood National Bank (FHNB)
P.O. Box 659701
West Des Moines, IA 50265-0970
Phone: (800) 243-7552

Nelnet (San Antonio Federal Credit Union (SACU) – Now CHFCU)
P.O. Box 2970
Omaha, NE 68103-2970
Phone: (888) 486-4722

Student Assistance Foundation (College Savings Bank)
P.O. Box 5209
Helena, MT 59604-5209
Phone: (800) 852-2761

Student Assistance Foundation (Greystone)
P.O. Box 5209
Helena, MT 59604-5209
Phone: (800) 852-2761

For more information on TG’s rehabilitation program, call TG at (800) 222-6297 or send email to tgcares@tgslc.org.