Rehabilitation

What is rehabilitation?

Loan rehabilitation is a program available to borrowers who have defaulted on their National Direct Student Loan (NDSL), Perkins Loan or University Long Term Loan (ULTL). Rehabilitation is not available on Health Profession, Nursing, or University Short Term Loans.

You must contact the MU Student Loan Repayment Center by phone or in writing to request rehabilitation. We will send you an "Agreement for Rehabilitation" form which you must complete and return to us. After we receive and approve the completed form, your loan will be placed in an "IN REHAB" status. You must make ALL of the required on-time consecutive monthly payments in order for your loan to be rehabilitated. Perkins and NDSL loans require 9 months of on-time payments. ULTL may have 6, 9, or 12 months of on-time payments, depending on the term stated in the agreement. The monthly payment amount will be determined by the University of Missouri and will be part of the "Agreement for Rehabilitation".

Bills are printed on the 15th of the month and payments are due on the 1st of the month, approximately 2 weeks later. A late payment will automatically void the rehabilitation agreement. Even if you have made all but one of your monthly rehabilitation payments on time and the last payment is late, your rehabilitation agreement will be automatically voided and you will have to re-apply for rehabilitation and start over at payment one.


What are the benefits of rehabilitation?

After receipt and processing of the final payment under your Rehabilitation agreement, your loan(s) will be considered "rehabilitated" and:

• Your rehabilitated loan will be returned to regular repayment status and you will be given an additional 9 years to repay your rehabilitated Perkins/NDSL loan(s) and an additional 5 years to repay your rehabilitated ULTLs; however, this is subject to the minimum monthly payment amount specified in your promissory note.
• You will re-establish eligibility for Title IV Student Financial Assistance after rehabilitating a Perkins/NDSL loan (as long as you are otherwise eligible).
• Only on Perkins/NDSL loans - the default on the rehabilitated loan(s) will be removed from your credit history.
• You will be eligible for any remaining balance of benefits and privileges on your original promissory note.
• You will be responsible for the terms of your promissory note which include, but are not limited to, informing us of address changes, making regular on-time payments, and notifying us of the need for flexible repayment arrangements.

A defaulted loan may be rehabilitated one time only.