I have a Perkins loan with a low balance left on it (approxiamtely $250) that I was planning on just paying off in full, however, the loan rep at the school that handles my account advised against paying off in full and entering it into rehab in order to remove the negatives from my credit file. I have a call in to the rep that handles the rehab programs, but have a few questions before I hear back from her.

My current monthly payment is $30/month. If the payments were to remain at this rate, the loan would be paid off in 8.3 months, not a full 12 months, would they lower the payments to stretch them out into 12 months worth? Does rehab always have to consist of 12 months worth of payments?

Also, is it possible to make all 12 payments early? Like sending seperate checks for the individual payments over the next couple months and indicating that the checks are for the following months? (does that make any sense?) I just want to pay it and be done with it.

Thanks in advance!

In order to rehab a loan, there must be a balance left after 9-12 months of at least $1k. Your loan would not qualify for rehab as a result.