If you have federal student loans, now is a really good time to check to make sure they’re in good standing. After you miss nine months of payments, federal student loans go into default. Once your loans are in default, the government can garnish your wages, take your tax refund, take a portion of your federal benefits (like Social Security), and even sue you to pay off your defaulted loans. The government has paused its student loan collection powers for now, but collections could turn back on soon. If your loans are in default, it is a good time to check and take action to get them back on track. You have options to get your loans back into good standing!
Studentaid.gov was recently improved to make it easier to remove your loans from default. If you are logged in, you can use the new Defaulted Loans Support Center to enter into a rehabilitation agreement, consolidate your loans, or make a payment on your loans online. The online rehabilitation agreement makes it easier than ever before to rehabilitate your loans for most borrowers. We have a new step-by-step guide on entering into a rehabilitation agreement here.
Are you in default? Share your story with us here.
