The loan holder will ask for your adjusted gross income (AGI) to figure out your 15% IBR payment.
A: In the past, loan holders commonly told borrowers that minimum payments were required so that they could sell the loan at the end of the rehabilitation period.Private collectors almost always said this because they were paid a higher commission if they set up rehabilitation plans where borrowers paid certain minimum amounts.There is no minimum amount that the loan holder must charge.The current rules should work much better for borrowers.However, this new rehabilitation will be subject to the one-time limit.
How to Rehabilitate Your Loans You will need to request rehabilitation from your loan holder.
You will most likely be dealing with a collection agency.
In the past, it was very common for collectors to tell you that you had to pay an unaffordable amount. The law says that you only have to pay what is reasonable and affordable.
If you object to the 15% IBR amount, you can negotiate a different payment, but you must use a standard form to provide additional income and expense information.
The loan holder can ask you to provide documentation of income and expenses. Collection during the rehabilitation period is limited to collection activities that are required by law and to any communications that support the rehabilitation (for example, monthly statements with the amount your rehabilitation payment listed).
You can renew eligibility for new loans and grants and eliminate the loan default by “rehabilitating” a defaulted loan.