How to get out of student loan default
Short answer: Federal student loans usually go into default after 270 days of missed payments. The U.S. Department of Education offers three ways out: loan rehabilitation (agree to 9 voluntary, reasonable, on-time monthly payments within 10 consecutive months), Direct Consolidation (consolidate and agree to an income-driven plan or make qualifying payments first), or repaying in full. Start with ED's Default Resolution Group or your loan holder — it is free.
Last verified November 5, 2026 · PSLFCheck Editorial
Compare the options
| Rehabilitation | Consolidation | |
|---|---|---|
| How | 9 payments in 10 months, amount based on income | New Direct Consolidation Loan |
| Default record on credit | Removed (late payments remain) | Stays, shown as paid |
| Speed | About 10 months | Often faster |
| Limit | Generally once per loan | Plan choices limited for consolidations made on/after July 1, 2026 |
Steps
- Find who holds your defaulted loan on studentaid.gov or myeddebt.ed.gov.
- Ask about rehabilitation or consolidation and get the terms in writing.
- If wages are being garnished, see wage garnishment — rehabilitation payments can stop it after enough payments.
- Once out of default, choose a plan; compare RAP vs IBR in the calculator.
Avoid scams
You never need to pay a third party to get out of default. Do not share your FSA ID. Report scams to the FTC and ED.
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FAQ
What happens in default?
The full balance can become due, and ED can garnish wages, offset tax refunds and some federal benefits, and report default to credit bureaus.
Do defaulted months count toward PSLF?
No. Payments made while a loan is in default generally do not count toward PSLF.
Sources
- Getting out of default — studentaid.gov — accessed November 5, 2026
- Collections on defaulted loans — studentaid.gov — accessed November 5, 2026
- Default Resolution Group — myeddebt.ed.gov — accessed November 5, 2026
- Avoiding student aid scams — studentaid.gov — accessed November 5, 2026
Related: What is PSLF · PSLF requirements · PSLF form · Teacher forgiveness · Forgiveness in 2026 · Apply for RAP · Get out of default · Wage garnishment