Reasonable and Affordable Repayment Plan

If you cannot afford the regular 10 year monthly payment on your defaulted student loan, you may be eligible for a temporary lower monthly payment.  You may be eligible for several “reasonable and affordable” income-based repayment options.  One option is based on Adjusted Gross Income (AGI), family size, and residence (state).  Another option is based on current income and reasonable expenses compared to the National Collection Standards per the Internal Revenue Service (IRS).  If you are approved for one of these “reasonable and affordable” options, you may be eligible for “Loan Rehabilitation” (see the section on this subject) which gives you the opportunity to have your loans removed from default and repair your credit.

Most borrowers with a defaulted student loan may be considered for Reasonable and Affordable Repayment.  If you are having trouble with repayment and are in default on your student loan, HESC will work with you to assess your situation and help you enter into a satisfactory repayment agreement.  Call 1-866-991-HESC (4372) to speak to a HESC representative and have your most recently filed tax return available when calling.