Defaulted Loan Rehabilitation

You may want to consider rehabilitating your defaulted loan(s).

Advantages of rehabilitation include:

  • Your loan(s) will no longer be considered to be in a default status.
  • The default status reported by your loan holder to the national credit bureaus will be deleted.
  • You will be eligible for the same benefits that were available on the loans before the loans defaulted. This may include deferment, forbearance, and Title IV eligibility.
  •  Wage garnishment ends and the Internal Revenue Service no longer withholds your income tax refund.

If you are a Perkins loan borrower:

To rehabilitate a Perkins Loan, you must make nine (9) on-time, monthly payments of an agreed amount to Mercer University. Payments secured from you on an involuntary basis, such as through wage garnishment or litigation, cannot be counted toward your nine (9) payments. Once you have made the required payments, your loan(s) will continue to be serviced by Mercer University until the balance owed is paid in full.

If you would like to be considered for the loan rehabilitation program, please download and complete the necessary form. Our office will review your request and notify you if you qualify under the proposed terms.