Loan Rehabilitation

If you’ve defaulted on loans, HESC’s Rehabilitation Loan Program gives you the opportunity to have those loans removed from default and to become eligible for student financial aid.

Program Overview

Here’s how the program works:

• You must have made nine consecutive, voluntary, agreed-upon monthly payments that are received within a 10 month period that begins with the month within which the first required due date falls and ends the ninth consecutive month following that month. Money received by HESC from your tax refund or as garnished wages from your paycheck does not qualify as these payments are not voluntary. NOTE: A good way to pay back your student loan is by enrolling in SmartCHECK, our preauthorized electronic debit service.
• The monthly payment must have been made within 20 days of the due date.
• You must agree to pay a fee of up to 18.5% of the unpaid principal and accrued interest. These costs are added to your unpaid balance when the loan or loans are sold to the lender. There is a one-time fee to rehabilitate your loan but the collection costs that you may be paying now will be removed from your loan.
• Once your loan is rehabilitated, you no longer make payments to HESC on your loan – HESC moves your loan back to a lender and you resume making payments on your loan to the lender.
• All national credit agencies are notified that your loan is no longer in default, helping to repair your credit and, as a result, your overall credit score may improve.

For more information or to begin your loan rehabilitation:

Call: 1-866-991-HESC (4372)
Email: cleancredit@hesc.org