A defaulted loan will be considered rehabilitated after the borrower makes 12 consecutive on-time monthly payments, as determined by Fort Hays State University .
Loan is returned to regular repayment status.
The first payment made under the 12 consecutive payments is the first payment under the 10-year repayment maximum. Borrower regains the balance of benefits and privileges of the promissory note as applied prior to default. Collection accounts will be returned from the collection agency. Borrower re-establishes Title IV student financial assistance eligibility. A Loan Rehabilitation Agreement must be negotiated, approved and executed before the loan can be rehabilitated.