Help With Defaulted Student Loans

For those on the edge of student loan default, it is highly important to avoid student loan default if at all possible. Defaulted student loans can drastically affect all aspects of your financial life, and once you have defaulted, help with defaulted student loans can be limited. To recover the outstanding balance due on defaulted student loans, any of the following steps may be taken:

1. Wage garnishments
2. Tax refund offsets
3. Federal benefits offsets
4. License revocations
5. Fees and fines
6. Legal action
7. Notification of credit bureaus

Once in student loan default the borrower is no longer eligible for forbearances or deferments, and is unable to receive any additional Title IV federal student aid (if in default on any Title IV student loans) until approved payments have been made consecutively for a minimum of six months.

For help with defaulted student loans, the Higher Education Act states that borrowers in default have the right to amend their defaulted student loans by setting up a reasonable and affordable payment plan with the loan holders. To get help with defaulted student loans, the borrower needs to contact the collection agency and arrange to rehabilitate the defaulted student loans. The borrower may need to detail their reasonable and affordable payment plan offer in writing, and may be required to supply additional supporting documentation if needed. Once a payment plan is agreed upon, the borrower needs to make 9 of 10 consecutive payments within 20 days of the due date. Once the payment requirements have been satisfied, the borrower will no longer be considered in default, and the record of the default will be removed from credit reports (however, as a result of the delinquencies which lead to default, your credit may be adversely effected for up to 7 years).

To get additional help with defaulted student loans, borrowers of private student loans can contact the servicer of the loans or the original lender to discuss their options. To get additional help with defaulted student loans, borrowers of federal student loans can contact Default Resolution Group at the US Department of Education.

Back Into Repayment After Student Loan Default

Q: If I have defaulted on my student loans, how do I…

Do I Have To Payback My Student Loans If I Drop Out

Q: If I dropout of college before I graduate from my degree…

Will Not Paying Back Student Loans Hurt My Credit

Q: Can not paying back student loans hurt my credit? I have…

Can I Get Government Grants To Pay Back Private Student Loans

For those who have taken out private student loans, and those who…

What Is Student Loan Garnishment

Q: What is student loan garnishment and should I worry about this…

5 Tips To Help With Private Student Loan Debt

Private student loan debt is a problem for many college grads today….

The Difference Between Loan Default And Delinquency

When it comes to student loan debt, many questions automatically arise. Default…

5 Tips For Repaying Your Student Loans

f you’re like the majority of college graduates, you have most likely…

Student Loan Debt
5 Tips to Manage Student Loan Debt

If you are like a majority of college grads out there, chances…

Student Loan Debt
What Is Student Loan Garnishment

Q: What is student loan garnishment and should I worry about this…

Student Loan Debt
What Happens To My Student Loans If I Return To School

Q: I am returning back to college after not attending for quite…

Student Loan Debt
How Much Student Loan Debt Is Too Much

Q: How much student loan debt is too much? More specifically, how…

Student Loan Debt

Questions For CollegeWhale

Have a college financial aid question? is full on answers! Type your question in the search box to get started.

Sign Up To Win Scholarships

Sign up for The Weekly Scholarship Round-Up, and let us bring the scholarships to you! Get a list of new available college scholarships delivered to your inbox each week.

sign upsign up