June 23 , 2008

Borrowers Benefit from Record Loan Rehabilitations

Recently, the Department of Education released FFY 2008 industry figures for default recoveries through April 30, 2008. Nationally, recoveries through loan rehabilitation are up 22.4 percent from last year, and average recoveries through loan consolidation are at an all-time low of 24.63 percent. Likewise, OGSLP’s average recoveries through loan rehabilitation are at an all-time high of 35.42 percent, and our average recoveries through loan consolidation are at an all-time low of 17.49 percent.

Hundreds of additional borrowers will benefit this year from OGSLP’s focus on recoveries through loan rehabilitation. Borrowers with rehabilitated loans regain Title IV eligibility and with it, access to new loans and reinstatement of flexible repayment options and applicable interest subsidies. Loan rehabilitation also positively impacts a borrower’s credit report by expunging negative information about defaulted loan(s). For more information about options for defaulted borrowers and OGSLP’s loan rehabilitation efforts, attend our Vaulting Out of Default conference session!