(viii) The guarantee agency must present to the borrower, within the time limit of paragraph (b) 1) vii) of this section, a new written redressing agreement confirming the borrower`s reasonable and affordable payment amount, which is recalculated. To accept the agreement, the borrower must sign and return the agreement or accept it electronically as part of a procedure provided by the Agency. Depending on your financial situation, your monthly qualified payment for credit rehabilitation can only be $5. It is generally said that you agree to rehabilitate your failed federal loans for students (federal family loans, Perkins or direct loans). Once the above payment criteria are met, a participating lender will purchase your loan (s) and you will continue to make monthly payments to the new lender. If you can`t afford to pay the initial monthly payment amount described above, Trellis calculates an alternative monthly payment based on the amount of your monthly income that remains after deducting reasonable amounts for your monthly expenses. You may need to provide documentation of your monthly income and expenses, including a completed credit rehabilitation form: income and expense information. Depending on your individual circumstances, this alternative payment amount may be less than the amount originally offered. To rehabilitate your loan, you must choose one of the two payment amounts. HESC (Higher Education Servicing Corp) (First Convenience Bank (FCB) — Killeen) Mailbox 678511 Dallas, TX 75267-8511 Phone: (800) 366-4372 www.hescloans.com Q: How is payment interrupted if I use the income and debit form? A: The department has set the payment at 100% of the difference between household income and expenses.
The department says it has changed this policy, so that the payment should be set at 15% of discretion income, defined as the difference between the borrower`s household income and household expenses (after certain reported expenses are subject to the reasons). You can renew eligibility for new loans and grants and eliminate credit default by “rehabilitating” a defaulted loan. To qualify for FFEL or Direct Loan rehabilitation, you must make 9 monthly payments within 20 days of maturity, over 10 consecutive months.