Options for Defaulted Borrowers

You have several options if you have a defaulted student loan:

• Pay your account in full with one lump sum.
• Establish satisfactory payment arrangements with your guaranty agency or collection agency.
• It is possible, after requirements have been met, to rehabilitate your loan and return to a standard repayment plan.
• Consolidate your account into one new loan with new terms.
• Make no payments and face the consequences of default.

Talk with your guaranty agency to determine which option is best for you.

If your student loan is already in default (i.e. more than 270 days late in payment), contact your loan holder or guaranty agency immediately to determine which option is best for you.

• Unsure who your loan holder is?  Use Mapping Your Future's Loan Locator.
• Need to contact the collection agency on your account?  Use this list of collection agencies utilized by the MDHE.