To be considered "satisfactory," your payments toward your defaulted student loan must be:
- Consecutive - one after another without interruption, such as monthly
- Voluntary - not obtained through wage garnishment, Federal Treasury offset, tax offset, etc.
- Full - which means:
- the minimum amount necessary to pay your debt in full within 10 years or $50, whichever is greater, or
- if you are unable to make the required minimum payment to pay the loan in full within 10 years, a "reasonable and affordable" payment can be arranged based on your income and debts
- On time - payments are received within a specific number of days of the scheduled payment due date
- within 20 days of the due date for loans that are being rehabilitated
- within 15 days of the due date for borrowers seeking to reinstate eligibility for federal student aid
Contact the collection agency assigned to your account to determine a satisfactory payment arrangement. To set up a reasonable and affordable plan, you will be required to submit documentation to the collection agency, including a completed Financial Disclosure Questionnaire.