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I have good news and bad news. The bad news is that a loan that is in a rehabilitation program can only complete the program once the guarantor sells the loan to a new lender after 9-12 months of ontime payments. Because of the bad economy and bad credit market, there are no investors buying rehabilitated loans, so loans in rehabilitation will not complete the program anytime soon, even after you make the required ontime payments.

The good news is that you can consolidate your defaulted loans while in rehab and be eligible to go back to school and receive new loans within 60 days. The link below is a company that can help you consolidate your defaulted student loans so you can go back to school.

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