Missed payments and federal loan default

Federal student loans enter default after at least 270 days of missed scheduled payments. Before that threshold, contact your servicer. After default, loans move to the Default Resolution Group or a guaranty agency. Official options include rehabilitation, consolidation, repayment agreements, or paying in full. Federal help is always free.

Who this guide is for

This guide is for federal student loan borrowers who missed payments, received delinquency letters, or already defaulted. It follows Federal Student Aid articles on getting out of default and rehabilitation as of November 13, 2026.

If you are choosing an income-driven plan after you exit default, pair this walkthrough with how to apply for RAP or IBR. If you are weighing consolidation, read Direct Consolidation after July 1, 2026 before you reset repayment history.

Delinquency vs default

Delinquency starts when you miss a scheduled payment. Your servicer may call, email, or report late status to credit bureaus under federal rules. You still work with your normal federal loan servicer during delinquency.

Default is a legal status Federal Student Aid defines for federal loans that stay unpaid long enough. For loans billed monthly, default happens when you fail to make a required payment for at least 270 days (about nine months of missed installments).

Do not confuse informal forbearance requests with curing delinquency. Unless the servicer grants a formal deferment or forbearance that pauses required payments, the delinquency clock keeps moving toward default.

What Federal Student Aid says to do before default

Federal Student Aid’s default article stresses contacting your loan servicer before you hit 271 days past due. Options while you are delinquent but not yet in default can include:

• Switching to a repayment plan with a lower monthly payment, such as an income-driven plan you qualify for
• Applying for deferment or forbearance if you meet eligibility rules
• Making partial payments when the servicer accepts them toward your bill (confirm how payments apply)

This is also the moment to open StudentAid.gov and confirm which loans you hold, who services them, and what your last payment date was. Our how to use StudentAid.gov tools guide walks through login and loan lists.

If you were on SAVE before March 2026 and your payment jumped, read SAVE ended: what to do now so you file the correct replacement plan before delinquency deepens.

What happens after default

When a loan defaults, Federal Student Aid says it may transfer to:

• The Default Resolution Group (DRG) for William D. Ford Federal Direct Loan Program loans, or
• The guaranty agency that holds your loan for Federal Family Education Loan Program loans

Default has immediate consequences Federal Student Aid lists:

• You are not eligible for additional federal student aid until you resolve default
• The entire balance may become due at once
• Your loan may be sent to a collection agency

Defaulted borrowers also use MyEdDebt.ed.gov for certain account tasks. Federal Student Aid warns this is a separate login from StudentAid.gov. You need your Social Security number to create the account. Your StudentAid.gov password will not work on MyEdDebt.

Involuntary collections after long default

If you stay in default more than 360 days without resolving it, Federal Student Aid describes involuntary collection:

Collection type	What Federal Student Aid states
Wage garnishment	Up to 15 percent of disposable pay from your paycheck
Treasury offset	Federal tax refunds and certain federal benefits can be taken to pay the debt

Federal Student Aid also states you must receive written notice before a Treasury offset on federal tax refunds. Treat every federal letter as urgent. Ignoring mail does not pause collections.

Voluntary rehabilitation or consolidation payments are separate from garnishment. Federal Student Aid notes that involuntary collections may continue until you are out of default or until you have made at least five qualifying rehabilitation payments, whichever comes first.

Official ways to get out of default

Federal Student Aid’s default resolution table is the backbone of this section. Paths depend on how long you have been in default and your loan program.

Contact your servicer before 271 days

If you are not yet in default, your servicer is still the first call. Fix the plan or pause only through official deferment or forbearance if you qualify.

Consolidate a defaulted loan (after 270 days)

Consolidation combines eligible federal loans into a new Direct Consolidation Loan. Federal Student Aid lists this for defaulted loans after more than 270 days in default.

Consolidation can exit default when you agree to repay under an eligible repayment arrangement. After July 1, 2026, a new Direct Consolidation can change which income-driven plans you may use. Federal Student Aid’s IDR FAQ states that for loans first disbursed under the new consolidation on or after July 1, 2026, RAP is the only IDR option. Read Direct Consolidation after July 1, 2026 before you consolidate solely to leave default.

Rehabilitation (nine-payment program)

Rehabilitation is often the best fit when you want default removed from your credit report. Federal Student Aid’s rehab article sets these rules:

Direct Loans and FFEL Program loans in default: Make nine on-time voluntary payments within 10 consecutive months. You may miss one payment in that window.

Perkins Loans: Make nine consecutive on-time monthly payments (stricter than Direct and FFEL).

The standard rehabilitation payment is 15 percent of your annual discretionary income divided by 12. If that amount is unaffordable, contact DRG and submit the Loan Rehabilitation Income and Expense form to request an alternative payment amount.

You may need to fax or mail supporting documents. Keep copies.

After successful rehabilitation:

• Your loan transfers to a new servicer
• Federal student aid eligibility returns
• The default is removed from your credit history (Federal Student Aid highlights this benefit compared with consolidation)

Rehabilitation is a one-time fresh start per loan under federal rules described on StudentAid.gov. Plan your next repayment plan before rehab ends so you do not slip back into delinquency.

Repayment agreement in collections

Federal Student Aid also lists a repayment agreement with the collection agency as an option. This can stop some collection activity when you stick to the agreement, but it does not carry the same credit report benefit as rehabilitation. Compare paths with DRG before you sign.

Pay in full

Paying the full defaulted balance plus collection costs ends default immediately if you can afford it. Few borrowers can. Federal Student Aid lists it for completeness.

Scams and fees

Federal Student Aid is explicit: the Default Resolution Group does not charge enrollment fees for rehabilitation or consolidation help. Companies that demand hundreds or thousands of dollars up front are selling what you can do free.

Federal Student Aid’s scam resources repeat that you never have to pay for help with your federal student loans. Our student loan scams and paid forgiveness guide lists red flags.

Never share your FSA ID password with any company, including debt-relief marketers. Student Loan Secrets will never ask for your FSA ID.

Step-by-step if you are already in default

1. List loans and holders. Use StudentAid.gov and any DRG or guaranty letters.
2. Create MyEdDebt.ed.gov access if DRG directs you there.
3. Call DRG or your guaranty agency using the phone number on official mail, not a random search ad.
4. Compare rehab vs consolidation. Rehab for credit removal when you can afford nine payments. Consolidation when you need one loan and understand July 2026 IDR limits.
5. Pick a sustainable plan after exit. Apply for RAP or IBR at StudentAid.gov/idr if you qualify. Defaulted loans cannot enter IDR until default is cured.
6. Set calendar reminders for every rehab payment. One missed payment outside the allowed window restarts rehab.

How default interacts with forgiveness and IDR in 2026

You cannot earn Public Service Loan Forgiveness qualifying months while loans are in default. Exit default first, confirm you hold Direct Loans or consolidated FFEL, then use a PSLF-eligible plan such as RAP or IBR. Tiered Standard payments do not count toward PSLF per Federal Student Aid SAVE FAQ material summarized on this site.

If you consolidated Parent PLUS loans after July 1, 2026, IDR access may be limited to RAP only or blocked entirely for Parent PLUS portions. That affects your post-default payment, not whether you can exit default.

FAQ

When does a federal student loan default?

Federal Student Aid states that a federal student loan defaults when you fail to make a required payment for at least 270 days on a loan with monthly installments. The clock is tied to missed scheduled payments, not informal pause requests. Contact your servicer before you reach that point.

What happens immediately after default?

After default, Federal Student Aid says your loan may transfer to the Default Resolution Group for Direct Loans or to the guaranty agency for FFEL Program loans. You lose access to some federal benefits, including new federal student aid, until you resolve default through an official path.

Can wage garnishment happen after default?

Federal Student Aid describes involuntary collection after more than 360 days in default without resolving the situation. That can include wage garnishment of up to 15 percent of your paycheck and Treasury offset of federal tax refunds and certain federal benefits. Treasury offset requires written notice first.

What is loan rehabilitation?

Rehabilitation is an official default exit path. For Direct and FFEL loans you must make nine on-time voluntary payments within 10 consecutive months, and you may miss one payment. Perkins loans require nine consecutive on-time payments. Successful rehabilitation removes the default from your credit history and returns aid eligibility.

Can I consolidate defaulted loans?

Federal Student Aid lists consolidation of a defaulted loan as an option after more than 270 days in default. A new Direct Consolidation Loan can exit default when you agree to repay under an eligible plan. Read our Direct Consolidation after July 1, 2026 guide before you consolidate, because new consolidations can change IDR eligibility.

Does MyEdDebt.ed.gov use my StudentAid.gov password?

No. Federal Student Aid directs defaulted borrowers to MyEdDebt.ed.gov with a separate account tied to your Social Security number. Your StudentAid.gov password will not work there. Still use official StudentAid.gov pages for rehabilitation and consolidation instructions.

Should I pay a company to get out of default?

No. Federal Student Aid states the Default Resolution Group does not charge enrollment fees. Scammers ask for fees for the same free federal process. You never have to pay a third party for federal student loan help. See our student loan scams guide and Federal Student Aid scam resources.

Sources

Primary citations for this guide are listed in the article frontmatter and rendered through the ArticleSources component. Federal Student Aid’s default article and rehabilitation article are the controlling sources for timelines, collection rules, and payment counts as of November 13, 2026.