Does this sound like this is applicable to private student loans?

Does this sound like their rehab program is applicable to private student loans?

One missed payment does not equal default (however, a missed payment appears on your credit history and may affect your ability to obtain credit in the future). A student loan can go into default after 120 days of nonpayment for private loans and 270 days of nonpayment for federal loans.

If your student loan account is delinquent and you are trying to prevent a loan/loans from entering default, please contact our Default Prevention department


Clicked on the link for More information:
The Default Rehabilitation Program allows defaulted student loan borrowers who have established satisfactory repayment after default to remove the defaulted status completely from their AES-guaranteed loan account(s) and credit report histories.

Does this sound like their rehab program is applicable to private student loans? Who is "their"? And where did you find this information? (A link to the webpage would be helpful.)

I know a bit about the rehab program.

If you make a certain amount of payments ( I believe it is 12 on time payments (could be wrong though)) then the lender will remove all derogatory remarks from your credit report and it will appear as essentially you never defaulted on your SL. This will also successfully bring your SL out of default and clean up any messes on your CR.

When you are in default, you can also choose to have your defaulted loans consolidated, which will pay off the defaulted amount plus any collection fees and add them to your principal, and bring your loan current. If you consolidate, the derogatory remarks remain, but you are immediately brought out of default and made current. Basically refinancing the SL debt.

I have never had a private loan, so I don't know the options there.

You would have to check with your actual lender to see if they offer a rehab program for private loans. I believe what they do is take your outstanding balance with late fees, etc, set up a payment plan based on that balance and then when you make the required number of payments, you are out of default officially and your loan is "rehab-ed" and the derogatory remarks removed. Your lender is the one to contact regarding loan rehab.