If your son is in default, rehabilitation is generally the best recourse. If he has not yet defaulted, then it is not an option. If you don't know, he needs to find out before talking to anyone. www.nslds.ed.gov is a website where he can find out this info.

To rehabilitate the loan:

Have your son contact the original lender and tell them that you want to "establish affordable monthly payments to rehabilitate your loans." Use this EXACT language. They may send him back to the CA. He needs to keep trying with the OC. By law they have to allow you to rehabilitate. The monthly payment will usually be around 3% of what you owe. After 12 months he will be eligible for federal loans, and will have the original bad marks (but not any subsequent marks from other servicers) removed from his credit reports. Don't believe a CA that says they will all be removed. This is not true. He will then have other repayment options available to him.

www.ed.gov is essential reading. Search for keyword "rehabilitation"

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