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FFELP Student Loans

Federal Family Education Loan Program (FFELP)

It’s no secret that managing your student loans can be challenging. If you’ve fallen behind on your payments, you may be afraid that there’s nothing you can do to get back on track. That’s not the case. We can help you handle even the most complex education debt issues.

Federal student loans enter default when payments become more than 270 days past due. There are serious consequences of default, but there are also ways to repair the situation – paying the loan in full, entering a rehabilitation program, or possibly consolidating out of default.

The benefits of completing these options include:

  • You can regain eligibility for additional financial aid.
  • Your wages and tax refunds will not be garnished.
  • Your loan will no longer be immediately due in full.
  • You can regain access to unused deferment and forbearance time.

Payment In Full

Paying the total amount you owe principal, interest and costs is the fastest way out of default.

Paying in full may not make sense for you, but try to pay as much as you can right away. Collection costs of up to 25% are applied to your loan balance 60 days after your loan defaults, so decreasing your balance can help decrease these costs.

Rehabilitate Your Loan

Loans rehabilitated on or after August 14th, 2008 only receive the rehabilitation opportunity once, so it’s important to have a good plan in place once your loan is out of default.

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Frequently Asked Questions

How Much Will Your Payment Be?

You will have to provide your loan holder with your income information as well as the number of people in your family. Your payment will be initially calculated as 15% of your disposable income (which is your Adjusted Gross Income minus 150% of the poverty level for your family size). Just remember that you’ll be required to provide proof of your income if this initial payment amount is one you can afford.

If you can’t afford that amount, we will ask for more information about your expenses in order to paint a more accurate picture of your total financial circumstances. This may result in a lower payment amount.

What Happens After Rehabilitation?

Once you have agreed upon a payment amount, made all the payments and returned all the required documentation, your loan is considered eligible for rehabilitation and will be sent to a new lender and service provider. You’ll also need to work with them to develop a new payment plan that will allow you to keep your loan in good standing.

Not only will rehabilitation get your loans back on track, but it may also help your credit and lower your collection costs.

How Do I Begin the Process of Rehabilitation

You will need to complete the forms on the links above entitled “Documentation of Adjusted Gross Income” and “Financial Disclosure for Reasonable and Affordable Rehabilitations”. Please be sure to include all supporting documentation requested on the forms. These documents should be emailed to  for Navient/Ascendium, and for ECMC/ASA these documents should be emailed to   (“REHAB TEAM” in the subject line) or submitted via fax to (877) 874-7697. To make the process easier, please use the pre-populated fax coversheet located on the below link “Fax Coversheet”.

Once this documentation is received, an FHC Representative will contact you to assist in finding the best option for you.

Important Information for Rehabilitating Your Loans

To rehabilitate your loans, you need to make nine on-time qualifying payments. Remember, each of the nine payments must be made within 20 days of the due date over a ten-month period and voluntary in order to count towards rehabilitation. If your wages are being garnished, you will have to make these voluntary payments in addition to the garnishment. Once you make the first five payments under the rehabilitation program, the garnishment order will be suspended. You may only receive the benefit of this suspension once so it’s important to keep making those rehabilitation payments on time.

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What is achieved by partnering with FHC is economies of scale, lower costs, and improved management efficiency.