The consequences of default are far reaching and affect a borrower and/or cosigner’s life for many years to come. MI-LOAN Program student loans remain in default until rehabilitated or paid in full.
To rehabilitate a MI-LOAN Program loan, payments must be equal to or greater than the amount determined to be required for repayment during default. A lump sum payment of future installments cannot be used to satisfy more than two monthly payments. After making nine on-time payments, of an approved amount, on ALL defaulted MI-LOANs, within the most recent and consecutive ten-month period, contact the MI-LOAN Program at 888-643-7521 to request a rehabilitation review. It is important to continue making full, timely payments until the review is completed.
If the loan default occurred while the borrower or cosigner was on active military duty or within 12 months thereafter, contact the MI-LOAN Program to discuss qualification requirements.
Once the loan is determined to be eligible, a rehabilitation packet will be provided to the borrower or cosigner with instructions for completion.
Upon completion of the rehabilitation:
The MI-LOAN Program will authorize removal of the loan(s) from default, updating of any credit reporting of the default, and a return to repayment status.
Repayment after rehabilitation:
After the rehabilitation is finalized, a new 15-year repayment schedule and monthly billing statements will be provided to the borrower and cosigners, if applicable.
Rehabilitation is a one-time opportunity for each loan. If a rehabilitated loan becomes 120 days delinquent again and is returned to default, that specific loan cannot be rehabilitated a second time.
For assistance call 888-643-7521 or e-mail SLP@michigan.gov
All borrower options and benefits are subject to change.