What is student loan rehab?

[danny4l]

I asked a question in another forum about whether delinquency is still reported after declaring a bankruptcy.  I was told that delinquencies would stay but the only type of loan that can be "rehabed" is a student loan.

Please explain as I don't know what this means.

Also, would this "rehab" apply to private Sallie Mae-type loans?

Thanks

[SCF]

Rehab is the official process for bringing defaulted federal student loans back into good standing.  Basically, you make 9 on-time payments to the CA and then they sell your debt back to a regular servicer and the default status is removed from your reports entirely.  The lates leading up to the default may or may not remain on your report.

Private student loans cannot be rehabilitated - it is a benefit that is unique to federal student loans.  You can try to get Sallie Mae to work with you on the lates through goodwill letters.