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Loan rehabilitation can be a helpful tool for dealing with defaulted federal student loans. Just entering loan rehabilitation has immediate effects on your defaulted loan(s). Entering into a loan rehabilitation agreement: limits collection activity to those required by law and to communications that support the rehabilitation
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Borrowers who have defaulted can still get their loans back on track and clean up their credit. (Getty Images) For borrowers who have defaulted on their federal student loans – meaning they missed.