Is my student loan in default, and how do I get it out?

Student loan default at a glance

Federal loan in default

270 dayswithout the scheduled payments (Direct and FFEL loans)

Reported to credit bureaus

90 daysof delinquency

Wage garnishment

Up to 15%of disposable pay, without a court order

Rehabilitation

9 paymentswithin 10 consecutive months; removes the record of default

Consolidation

3 paymentsfirst, or agree to an income-driven plan

Offset and garnishment

Pausedas of November 1, 2026, StudentAid.gov says

Default Resolution Group

1-800-621-3115TTY 1-877-825-9923

What student loan default means

For a federal student loan, the clock starts the day after a missed payment. Federal Student Aid says the first day after you miss a student loan payment, your loan becomes past due, or delinquent: 1 day after the missed due date. If you are delinquent for 90 days or more, your loan servicer reports the delinquency to the national credit bureaus. If you keep missing payments, the loan goes into default, and when that happens depends on the kind of loan.

Federal Student Aid's short version: if you don't make payments on your federal student loans for nine months, your loans go into default. The Direct Loan regulation defines default as a failure to pay that persists for 270 days (34 C.F.R. § 685.102(b)). The Default Resolution Group is the servicer for defaulted federal student loans over 360 days delinquent.

Collections right now: what is paused, as of November 1, 2026

1. April 21, 2025

   The U.S. Department of Education announced it would resume collections on defaulted federal student loans. It had not collected on defaulted loans since March 2020.

2. May 5, 2025

   The Treasury Offset Program restarted for defaulted student loans; ED said notices beginning administrative wage garnishment would follow later that summer.

3. January 16, 2026

   ED paused collections through the Treasury Offset Program and paused plans to resume administrative wage garnishment, to put the new repayment rules in place first.

4. July 1, 2026

   The date ED gave for its new income-driven plan. The only IDR plan for Direct Consolidation Loans disbursed as of July 1, 2026, is the Repayment Assistance Plan.

5. July 1, 2027

   A defaulted loan can be rehabilitated twice over its lifetime instead of once, and the lowest Direct Loan rehabilitation payment rises from $5 to $10 (34 C.F.R. § 685.211(f)(1)(i)).

StudentAid.gov calls the new law the One Big Beautiful Bill Act; ED's January 16, 2026 press release calls it the Working Families Tax Cuts Act. During the pause, ED tells borrowers in default to resolve the default or set up a payment schedule with the Default Resolution Group.

What happens if you default on a student loan

Federal Student Aid lists the consequences of default on a federal loan. Each one applies until the loan is out of default or paid.

• The whole balance is due. The entire unpaid balance and any interest you owe becomes immediately due. This is called acceleration.Federal Student Aid
• Tax refunds and federal benefits can be taken. Treasury offset withholds federal and state income tax refunds, Social Security payments (including Social Security disability benefits) and other federal payments. The CFPB says the Department of Education can take up to 15 percent of your Social Security or SSDI benefits. Paused as of November 1, 2026.Federal Student Aid · CFPB
• Wages can be garnished without a court order. The loan holder can order your employer to withhold up to 15% of your disposable pay. The wage garnishment guide explains the notice and your rights. Paused as of November 1, 2026.Federal Student Aid
• Collection costs are added. You may be charged court costs, collection fees, attorney's fees and other collection costs. If you consolidate a defaulted Direct or FFEL loan, collection costs are capped at 18.5 percent of the principal and interest (34 C.F.R. § 685.220(f)(1)(iii)).Federal Student Aid · 34 C.F.R. § 685.220
• You can be sued. Your loan holder can take you to court.Federal Student Aid
• Benefits and new aid stop. No deferment or forbearance, no choice of repayment plan, and no new federal student aid such as Federal Pell Grants and student loans. Defaulted loans are not eligible for income-driven repayment plans.Federal Student Aid
• Your credit takes the hit. The default is reported to the credit bureaus, and it may take years to reestablish a good credit record. You may not be able to buy or sell assets such as real estate.Federal Student Aid
• Your transcript may be held. Your school may withhold your official transcript; if it does, it must give you an unofficial transcript when you ask.Federal Student Aid

There is no time limit on collecting a federal student loan. Federal law says no limitation shall terminate the period within which suit may be filed, a judgment may be enforced, or an offset, garnishment, or other action initiated (20 U.S.C. § 1091a(a)(2)). Private debt is different: see the statute of limitations on debt by state.

How to know if your student loan is in default

If you haven't made a full payment in at least a year, and you aren't in a deferment or forbearance, your loans are likely in default, Federal Student Aid says. To be sure:

1. 1Log in to StudentAid.gov. If you are in default, a warning message appears in a red box on your account Dashboard. Under My Aid, the loan details show each loan's status. StudentAid.gov lists federal loans only, not private ones.
2. 2Check the servicer's name. In the My Loan Servicers section, a name that starts with DEPT OF ED means the U.S. Department of Education holds that loan. Default Resolution Group as the servicer confirms default; a defaulted FFEL loan may be with a guaranty agency instead.
3. 3Open a MyEdDebt.ed.gov account. It is the official site for defaulted loans: loan status, payments, and your voluntary and involuntary payment history. You create it with your Social Security number; your StudentAid.gov login does not work there.
4. 4Call the Default Resolution Group. 1-800-621-3115 (TTY 1-877-825-9923), Monday to Friday 8:00 a.m. to 10:00 p.m. and Saturday 8:00 a.m. to 6:00 p.m. Eastern time. If you are abroad or incarcerated and can't use the toll-free number: 1-540-792-9171. Not sure who holds your loan: the Federal Student Aid Information Center, 1-800-433-3243.
5. 5Read your credit report. Delinquency is reported at 90 days. If nothing is done within 65 days of the default, the Default Resolution Group reports the loan as in default to Equifax, Experian, Innovis and TransUnion, so a loan may appear more than once. To fix a wrong entry, see how to dispute a credit report error.
6. 6A Perkins Loan? Ask the school that made the loan, or the ECSI Federal Perkins Loan Servicer if the loan was assigned to the U.S. Department of Education.

Student loan default warnings: the notices before collection

• Emails from noreply@studentaid.gov to borrowers who are delinquent and to borrowers in default, with how to manage the loans and get out of default.
• A letter from the Default Resolution Group after the loan defaults, outlining steps to get back on track (for most defaulted FFEL loans, from a guaranty agency).
• A notice of intent to offset, mailed to your last-known address: offset and negative credit reporting are scheduled to begin in 65 days. It may be sent only once, and you can still act until the date printed on it.
• A wage garnishment notice, saying ED intends to garnish your wages in 30 days. A hearing request postmarked no later than 30 days from the date the notice was sent holds off the garnishment: see how to request a student loan garnishment hearing.

How to get a student loan out of default: the options compared

Federal Student Aid names three ways out: repay the loan in full, rehabilitate it or consolidate it; the two main ways are rehabilitation and consolidation. Rehabilitation takes several months but removes the record of default from your credit history; consolidation is quicker to apply for but leaves the default on it.

Student loan rehabilitation: 9 payments in 10 months

To rehabilitate a defaulted Direct Loan or FFEL loan, you agree in writing to make nine voluntary, reasonable, and affordable monthly payments within 20 days of the due date, and you make all nine during 10 consecutive months, so you may miss one payment in a 10-month period. The Direct Loan rule: 9 voluntary, reasonable and affordable monthly payments within 20 days of the due date during 10 consecutive months (34 C.F.R. § 685.211(f)(1)). For FFEL loans, the 10-month period begins with the month in which the first required due date falls and ends with the ninth consecutive calendar month following that month (34 C.F.R. § 682.405(a)(2)(i)(B)). A Federal Perkins Loan needs a full monthly payment within 20 days of the due date each month for 9 consecutive months, with no month missed (34 C.F.R. § 674.39(a)(2)(ii)).

In dates: if every payment is made on time, payment 5 is due 4 months after the first, payment 9 is due 8 months after the first, and the 10-month window ends with the month 9 months after the first due date. Within 30 days of the last Perkins payment, the school must return the loan to regular repayment and tell the credit bureaus to remove the default (34 C.F.R. § 674.39(b)).

1. 1Contact the loan holder. For most borrowers that is the U.S. Department of Education's Default Resolution Group; for a FFEL loan held by a guaranty agency, that agency.
2. 2Send proof of income. Your latest tax transcript, or both pages of your most recent IRS Form 1040, signed by hand. The Default Resolution Group takes it by fax at 1-240-931-3323 or by mail to U.S. Department of Education, Default Resolution Group, P.O. Box 5609, Greenville, TX 75403-5609.
3. 3Sign the agreement. ED mails a loan rehabilitation agreement within 10 business days of receiving your information, with your monthly amount and the terms; you must sign a Rehabilitation Agreement Letter.
4. 4Pay every month, on time. Each payment counts only if it is voluntary and made within 20 days of its due date. You can set up automatic monthly payments by calling the Default Resolution Group.
5. 5Watch for the transfer. After the last payment, the loan moves to a new servicer, and an email confirming it arrives within 30 days. Then choose a repayment plan.

• Your payment. Usually 15% of your annual discretionary income, divided by 12; 10% or 15% depending on when you received your loans. Discretionary income is your adjusted gross income above 150% of the poverty guideline for your state and family size. It can be as low as $5; beginning July 1, 2027, the regulation sets the lowest payment at $10.Federal Student Aid · 34 C.F.R. § 685.211(f)(1)(i)
• Too high? Ask for an alternative amount based on your income and expenses, with the Loan Rehabilitation Income and Expense form; the new amount comes by mail within 10 business days. A reasonable and affordable payment can't be a required minimum, such as $50, if a smaller amount is affordable, and can't be a percentage of your loan balance.Federal Student Aid · 34 C.F.R. § 685.211(f)(1)(iii) · § 685.211(f)(3)
• Garnishment during rehabilitation. Wage garnishment and Treasury offset can continue until you have made at least five rehabilitation payments, and they don't count toward the nine.Federal Student Aid · 34 C.F.R. § 685.211(f)(11)
• What it removes. After your ninth rehabilitation payment, ED asks the credit reporting agencies to remove the record of default. Late payments reported before the default stay on your credit history. You regain deferment, forbearance, a choice of repayment plans, loan forgiveness and federal student aid.Federal Student Aid · 34 C.F.R. § 685.211(f)(8)
• How many times. Once per loan until June 30, 2027. Beginning July 1, 2027, a loan can be rehabilitated twice over its lifetime; the limit applies to each loan, not to the borrower.Federal Student Aid · 34 C.F.R. § 682.405(a)(4)(ii) · § 674.39(e)(2)
• When it is not possible. A defaulted Direct Loan on which a judgment has been obtained may not be rehabilitated.34 C.F.R. § 685.211(f)(9)
• Collection costs. When a rehabilitated FFEL loan is sold or assigned, the collection costs added may not exceed 16 percent of the unpaid principal and accrued interest; for a Perkins Loan, 24 percent.34 C.F.R. § 682.405(b)(1)(vi)(B) · § 674.39(c)(1)

Consolidating a defaulted student loan

Consolidation pays off one or more defaulted federal loans with a new Direct Consolidation Loan. You can apply quickly, but the default stays on your credit history, and accrued interest is added to the principal, so you may pay more overall than with other ways out.

• Either agree to repay the new loan under an income-driven repayment (IDR) plan, or make three consecutive, voluntary, on-time, full monthly payments on the defaulted loan first; that amount can't be more than what is reasonable and affordable.
• Not while garnished or after a judgment: you can't consolidate a loan collected by wage garnishment or under a court judgment unless the garnishment order has been lifted or the judgment vacated (34 C.F.R. § 685.220(d)(1)(i)).
• Reconsolidating: a defaulted Direct Consolidation Loan needs at least one other eligible loan in the new loan; a defaulted FFEL Consolidation Loan can be reconsolidated alone only with an IDR plan.
• Which plan: the only IDR plan for Direct Consolidation Loans disbursed as of July 1, 2026, is the Repayment Assistance Plan. A consolidation loan that includes a parent PLUS loan is not eligible for an IDR plan.
• Costs and credit: collection costs on a defaulted Direct or FFEL loan are capped at 18.5 percent (34 C.F.R. § 685.220(f)(1)(iii)). StudentAid.gov's FAQ says the record of the default may remain on your credit history for up to 10 years; its consolidation section says late payments remain for seven years from when they were first reported.

Paying in full, or a payment arrangement

Paying the whole defaulted balance ends the default too; Federal Student Aid says that is not a practical option for most borrowers. You can pay by debit or prepaid card on MyEdDebt.ed.gov, or mail a check or money order payable to the U.S. Department of Education to the National Payment Center, P.O. Box 790336, St. Louis, MO 63179-0336, with your name and account number on it.

If you can't rehabilitate, consolidate or pay in full, a payment arrangement lets you pay based on your finances while the loan stays in default: call 1-800-621-3115. If you got a notice of intent to offset, making the first payment within 65 days, by the date on the notice, avoids the offset.

Discharge: when a defaulted loan can be cancelled

With a discharge you don't have to pay back some or all of a federal loan, and Federal Student Aid lists it as a way out of default, with no set deadline to apply.

• Total and permanent disability (TPD) discharge: Direct, FFEL and Perkins loans.
• Closed school discharge: your school closed while you were enrolled or soon after you withdrew.
• Borrower defense: you took out a Direct Loan to attend a school that misled you or engaged in other misconduct; FFEL and Perkins loans may qualify once consolidated into a Direct Loan.
• False certification or unpaid refund discharge: Direct and FFEL loans.
• Death: federal student loans are discharged if the borrower dies, or the student on whose behalf a PLUS loan was taken out dies.
• Bankruptcy: Federal Student Aid lists a loan discharged in bankruptcy among the discharges. See which debts bankruptcy clears for when that is possible.

Income-driven repayment ends with a discharge of any remaining balance after 20, 25 or 30 years of qualifying payments, depending on the plan, but defaulted loans are not eligible for IDR plans until they are out of default.

Bankruptcy clears student loans only in limited cases; when you need a bankruptcy lawyer, and the means test for your state, are on Do I need a bankruptcy lawyer?.

Think the default is a mistake? How to dispute it

1. 1In school at least half time? Get a record of your dates of at least half-time attendance from each school's registrar, and send it to the loan servicer if its last date of attendance is wrong.
2. 2Approved for a deferment or forbearance? Ask the servicer to confirm the start and end dates, and send documents if its records are wrong.
3. 3Made your payments on time? Ask for a statement of all payments, and send proof of any payment that is missing.
4. 4File the dispute. Call 1-800-621-3115 to file a dispute, or file one online with the Federal Student Aid Ombudsman.
5. 5Got a notice of intent to offset? Object with the Request for Review Form that came with it, or a written statement with your name, your Social Security or account number, the debt and why you disagree, within 65 days, to U.S. Department of Education, Default Resolution Group, P.O. Box 5227, Greenville, TX 75403-5227. If you ask for the documents about your debt within 20 days of the date on the notice, you have 15 days after they are mailed to ask for a review.

You can ask for copies of every document ED has about your debt, such as the promissory note, the loan application and your payment records, by writing to the same P.O. Box 5227 address with your Social Security or account number.

Fresh Start for defaulted student loans: where it stands

As of November 1, 2026, StudentAid.gov says the Fresh Start program ended on Oct. 2, 2024. MyEdDebt.ed.gov accounts still show whether you enrolled in it, and StudentAid.gov's old Fresh Start page now opens its Getting Out of Default page. The ways out today are rehabilitation, consolidation, paying in full and discharge. Borrowers who are incarcerated or abroad and can't use the toll-free number can call the Default Resolution Group at 1-540-792-9171.

Private student loan default: different rules

• Your contract sets the default. Private student loans often go into default when you miss monthly payments; depending on the terms, also if you declare bankruptcy or default on another loan. The CFPB says it takes about 3 months for most private loans.CFPB
• No garnishment without a court judgment. Most creditors can only garnish wages or benefits after a court issues a judgment saying you owe the debt. Private student loan collectors can sue you but cannot intercept your tax return.CFPB
• State law sets the time to sue. A private lender may sue within the statute of limitations, which varies from state to state; after it expires, the lender is no longer legally allowed to sue you to collect the debt. See the time limit in your state.CFPB
• Co-signers share the damage. If you have a co-signer, the default shows up on their credit report too.CFPB
• The federal ways out don't apply. Rehabilitation and the Direct Consolidation Loan are federal programs; the loans that can be consolidated (34 C.F.R. § 685.220(b)) are federal loans. Ask your lender or servicer about a payment plan. A collector calling you must follow the rules in debt collector calls.CFPB · 34 C.F.R. § 685.220

Calling the Default Resolution Group: what to say

Write down the date, the agent's name and what was agreed, and keep every letter. If you can't reach an agreement or think the debt is wrong, free and low-cost legal help can review it.

Common questions about student loan default

Official sources

1. Federal Student Aid: Student Loan Delinquency and Default studentaid.gov
2. Federal Student Aid: Getting Out of Default (rehabilitation, consolidation, repayment in full) studentaid.gov
3. Federal Student Aid: Collections on Defaulted Loans (Treasury offset and wage garnishment paused, read November 1, 2026) studentaid.gov
4. Federal Student Aid: Defaulted Loans Support Center studentaid.gov
5. Federal Student Aid: Student Loan Default and Collections: FAQs studentaid.gov
6. Federal Student Aid: Student Loan Rehabilitation for Borrowers in Default: FAQs studentaid.gov
7. Federal Student Aid: Deferment and Forbearance studentaid.gov
8. Federal Student Aid: Income-Driven Repayment Plans studentaid.gov
9. Federal Student Aid: Student Loan Discharge and Forgiveness studentaid.gov
10. U.S. Department of Education, Default Resolution Group: Treasury Offset Program and Wage Garnishment Updates (January 16, 2026) myeddebt.ed.gov
11. U.S. Department of Education, Default Resolution Group: contact myeddebt.ed.gov
12. U.S. Department of Education press release: Delays Involuntary Collections (January 16, 2026) ed.gov
13. U.S. Department of Education press release: to Begin Federal Student Loan Collections (April 21, 2025) ed.gov
14. 34 C.F.R. § 685.102: Direct Loan definitions (default) ecfr.gov
15. 34 C.F.R. § 685.211: Direct Loan rehabilitation of defaulted loans ecfr.gov
16. 34 C.F.R. § 685.220: Direct Consolidation Loans ecfr.gov
17. 34 C.F.R. § 682.405: FFEL loan rehabilitation agreement ecfr.gov
18. 34 C.F.R. § 674.39: Perkins Loan rehabilitation ecfr.gov
19. 20 U.S.C. § 1091a: statute of limitations (none for federal student loans) govinfo.gov
20. Bureau of the Fiscal Service: Treasury Offset Program fiscal.treasury.gov
21. CFPB: What happens if I default on a private student loan? consumerfinance.gov
22. CFPB: Can a debt collector take or garnish my wages or benefits? consumerfinance.gov
23. CFPB: Options for repaying your federal and private student loans consumerfinance.gov

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