Edited by: Bruce Mesnekoff

Defaulted student loans can be a nightmare to deal with.  Third-party collection agencies may be attempting to force payment from you in a single due, also known as acceleration.  Your loan may then be placed with a collection agency, causing you to pay expenses for costs that were brought up trying to receive your payment.


The US Department of Education has the right to take a defaulted student loan in collection.  Your wages and income tax refunds may be suppressed from you as a means of way for the government to collect the money owed from your defaulted federal student loan; this process is called Treasury offset.

It is not required to have a court judgment to rule whether or not your loaner may withhold portions of your disposable pay to pay off your defaulted student loan debt.  This withholding of money is known as garnishment, and is in full effect until you have paid off your debt, or are taken out of default.

You will receive garnishment notice from your loan holder, and you have within thirty days of receiving garnishment notice to object, by requesting a hearing.  After the thirty day period garnishment will be in effect, and will be enforced while you object your garnishment, so it is important that you get your objection in within the thirty day lead way period.

Rehabilitation is an option you may consider when dealing with the collector of your defaulted student loan.  By making multiple payments in a row on time you will be taken out of default status when rehabilitating a loan.  This can only e used on a loan one time, and is the only way you can get the default title wiped off of your credit history.  Rehabilitation is usually paid by a series of nine payments, and your eligibility for federal student aid may be restored after payment six if you decide to enroll in school once again.

It is important to stay in contact at all times with your loaner, and enlisting the help of a student loan forgiveness program may help you pay off your loans.

There is no quick fix for paying off your student debts, but student loan forgiveness programs can greatly help you.  With the use of student loan forgiveness programs you will find yourself on the road to paying off your student loans at your own pace.  For more helpful tips and information on paying off your student loans check back frequently on our blog.