Know Your Rights Default on Federal Student Loans
Starting May 5, 2025, the U.S. Department of Education will restart mandatory collections on federal student loans that are in default. This means they can take money from your paycheck, tax refunds, or Social Security benefits to repay the debt. The pause on collections that began during the pandemic is ending, and borrowers will need to find ways to get out of default.
Borrowers who have defaulted on federal student loans still have rights.
- Right to Dispute: Borrowers can challenge errors in their loan records or collections.
- Loan Rehabilitation: A structured repayment plan can remove the default from credit reports.
- Loan Consolidation: Combining loans into a new federal loan can help exit default.
- Appeal Wage Garnishment: Borrowers can request a hearing to stop or reduce garnishment.
- Access to Repayment Plans: Income-driven repayment plans may still be available.
- Protection from Harassment: Debt collectors must follow fair collection practices.
You can log into your loan servicer’s website to view your student loans and keep a copy for your records. You can also monitor your credit reports. For more help getting out of default, you can visit the U.S. Department of Education’s website. If you need further assistance, contact one of my six District offices near you.
LEGAL DISCLAIMER: This document is for general informational purposes only. Its contents are not legal advice. If you need legal advice, please contact an attorney.