Federal Student Loan Default & Collections

A missed payment makes the loan delinquent on the first day after it is due. At 90 days or more, the servicer reports the delinquency to national credit bureaus. A federal student loan generally enters default after 270 days without a scheduled payment.

Federal Student Aid says involuntary collections may begin after a loan has been unpaid for more than 360 days and the borrower has not resolved the default. Before Treasury offset or administrative wage garnishment, the borrower receives a written notice and an opportunity to act or request a hearing.

Yes. Treasury offset can withhold a federal tax refund and certain federal benefits to collect a defaulted federal student loan. The government sends a written notice before offset begins. A repayment agreement, consolidation, rehabilitation, full payment, discharge, or a successful dispute can stop or resolve collections depending on the facts and timing.

Administrative wage garnishment can withhold up to 15% of disposable pay for a defaulted federal student loan. A borrower may request a hearing; Federal Student Aid says the hearing request should be postmarked within 30 days of the garnishment notice to pause garnishment while the hearing is pending.

The main routes are Direct Consolidation, a nine-payment rehabilitation agreement, a repayment agreement, payment in full, or a qualifying discharge. Consolidation is usually faster but can add collection costs and leaves the default record on the credit history. Rehabilitation takes longer but can remove the default record after the ninth qualifying payment.

Consolidation replaces eligible defaulted loans with a new Direct Consolidation Loan and can restore plan access faster, but interest can capitalize, collection costs can be added, and the default record remains. Rehabilitation requires nine qualifying payments and more time, but avoids collection fees and prompts removal of the default record after completion; earlier late payments can remain.

Act by the deadline printed on the notice. Federal Student Aid says a first repayment-agreement payment made within 65 days of the Treasury offset notice can avoid offset, while a first payment within 30 days of the garnishment notice can avoid garnishment. A hearing request can temporarily pause the relevant collection while the dispute is reviewed.

Loans held by the U.S. Department of Education are generally handled by the Default Resolution Group at MyEdDebt.ed.gov or 1-800-621-3115. Commercially held FFEL loans may be assigned to a guaranty agency. Confirm the status and contact path in the StudentAid.gov Dashboard before sharing personal information.

Save the account history, billing statements, payment confirmations, and notices. Compare them with the StudentAid.gov Dashboard, ask the servicer or Default Resolution Group for the debt records, and use the hearing instructions in the notice if collection is scheduled. A borrower has the right to request documents related to the debt.

Be cautious. The Default Resolution Group does not charge enrollment, subscription, or maintenance fees. Federal applications for consolidation, rehabilitation arrangements, repayment plans, and discharge are handled through official government or assigned-servicer channels without a third-party enrollment fee.