Due to recent changes in Federal regulations, the University of Kansas has established a loan rehabilitation program for defaulted borrowers which became effective July 1, 2000. A defaulted loan will be considered rehabilitated after the borrower makes 9 consecutive on-time monthly payments, as determined by the University of Kansas.
The benefits of loan rehabilitation include:
- Request will be sent to credit bureau to remove default from credit history
- Loan is returned to regular repayment status
- Borrower regains balance of benefits and privileges of promissory note applied prior to default
- Collection costs are capped at 24% as of the date following the application of the ninth consecutive payment
- Borrower re-establishes Title IV student financial assistance eligibility
How to apply:
- Borrowers must request loan rehabilitation
- Call or send written request
- A Loan Rehabilitation Agreement must be negotiated, approved and executed before the loan can be rehabilitated
A defaulted loan may be rehabilitated one time only!
Please contact ECSI at 888-549-3274 if you would like to take advantage of this program.