rehabilitating college loans

I currently am rehabilitating my college loans, which means I will be paying 12 months worth of payments on time and then what happens? My understanding is that my credit reports will look like I never went into default?The loans will just be removed from my credit report and I will have to pay the collection costs,added on to the original loan. I was wondering if afterwords I could refinance at the current interest rate, or how would the interest rate be determined? Also do I need to notify the credit bureaus or does someone else?
thanks for your help!

How did you get the loan in the first place? Are you going to pay off the loan in 12 months? Was you loan really small?