Addressing Your Defaulted Student Loan

Options When in Default

Student loan borrowers in default now have more options than ever before to repay student loans. The U.S. Department of Education's (Department) Default Resolution Group is committed to assisting you by making debt repayment a simple process.

Make a payment

If you have a defaulted student loan held by the Department, you can mail a check or money order to the Department's Payment Center. You can also make a payment now by credit or debit card. We accept American Express, Discover, Master Card, and Visa as payment options. Please contact the Default Resolution Group at 1-800-621-3115 to process your credit card payment.

This site will provide you with information on the repayment collection of the following loan and grant programs:

  • Federal Family Education Loans (FFEL), which include Federal Stafford, Federal Consolidation, and Federal PLUS loans - When placed in default and not repaid, these loans will be assigned to the Department's Default Resolution Group for collection.
  • Direct Loans, which includes Federal Stafford, Consolidation and PLUS loans that are offered through the William D. Ford Direct Loan Program - This includes TEACH Grants that have been converted to Direct Unsubsidized Loans. When placed in default, these loans are assigned to the Department's Default Resolution Group.
  • Federal Perkins Loans - When placed in default, Perkins Loans may remain with the school or be assigned to the Department for collection.
  • TEACH Grants, Federal Pell Grants, Federal Supplemental Educational Opportunity Grants (FSEOG), Academic Competitiveness Grants and National SMART Grants - In certain instances, you may have to repay part of a Federal grant that was awarded to you. When repayment is required, these grants are assigned to the Department for collection due to an over award payment or the recipient withdrew from the eligibility program early.

If you are not sure what type of loan or grant you have, check your original loan/grant document(s) or use our National Student Loan Data System. If your loan/grant is not one of the loans/grants listed above, the information on this site does not apply to you.