Hello everyone, I have one small ramaining school loan that is in default with an est. $1400.00 balance, which at this point is a little too much for me to be able to PIF. A CA has offered me the rehabilitation program to help me get this settled, and I've become interested in it after reading some of the possitive effects it can have on my credit. But a few questions still remain.

From what I've read on these forums, I would have to have a remaining balance after the nine month period of $1000.00 or more to be eligible. Is this correct? And if so why would the CA offer this seeing as how I would only have an est. $700 balance after the nine month timeframe?

If I decide to go with rehabilitation, and three or four months down the road I have the financial ability to PIF my SL, will I be able to do so? Would there be any penalties?

Any help would be appreciated.

In order to consolidate, you need to have a $1000 remaining after making payments for 9-10 months. With a minimum $50 payment required you would be cutting it awfully close!

Thanks for the quick reply. The CA is asking me to make $75 payments with about an 8% int. rate. That would leave me under the $1000 requirement. I was told by the CA that if I do the rehab, and can PIF at anytime durring the program, there would be no problems with me doing so. I'm just very sceptical if I dont have it in writing.

You can PIF at anytime. However you will not have the benefit of rehab...all the negative info will remain.

Ok thank you Lynn I appreciate the help.