What to do if…
you receive a student loan default warning or a threat of collection action

What to do now

1. Save the notice and capture the essentials. Keep the envelope, email, text, or voicemail. Write down the sender name, account or reference numbers, the action threatened, the amount claimed, the date on the notice, and any deadline.

2. Work out whether the loan is federal or private.

   • For federal loans, log in to https://studentaid.gov and check the loan status, current servicer, and whether the loan has been assigned to the Default Resolution Group.
   • For private loans, check the lender’s own portal, your old loan documents, and your credit reports. Do not rely only on what a caller says.

3. Use only verified contact routes. Call or message the servicer, loan holder, or Default Resolution Group using contact details from StudentAid.gov, MyEDDebt, the lender’s official website, or the written notice after you have checked it. Do not use a phone number from an unexpected text or email until you have verified it.

4. If a debt collector contacted you, ask for validation in writing.

   • Debt collectors generally must give validation information, usually during the first contact or within five days.
   • The validation information should include the creditor name, the amount, and how to dispute the debt.
   • If you dispute the debt in writing within 30 days after receiving the validation information, the collector must stop collection until they send verification.
   • If the collector cannot provide basic validation information, treat it as a scam risk and do not pay through that contact.

5. If the federal loan is delinquent but not yet in default, ask what stops default. Contact the official servicer and ask whether a deferment, forbearance, an available income-driven or other repayment plan, or updated income documentation can stop escalation for your loan type.

6. If the federal loan is already in default, ask for the official default-resolution options. The usual routes are rehabilitation, consolidation, or repayment in full. Ask the loan holder or Default Resolution Group which options apply to your loan and what first step is needed today.

7. If federal wage garnishment or offset is threatened, check the current federal collections status as well as the notice deadline. As of this review, the U.S. Department of Education has announced a temporary delay of federal involuntary collections, including Administrative Wage Garnishment and the Treasury Offset Program, while repayment changes are being implemented. Still read the notice carefully, because deadlines and hearing rights may still matter.

8. If federal administrative wage garnishment is specifically threatened, read the hearing instructions before doing anything else. A federal administrative wage garnishment notice may give you 30 days from the date it was sent to request a hearing. A timely hearing request may pause garnishment until after the hearing process, but it does not by itself resolve the default.

9. If tax refund or federal payment offset is threatened, verify the loan holder and ask what can still be done. Use the official federal loan holder or MyEDDebt route. Ask whether any review, dispute, repayment arrangement, or default-resolution step is available before the offset happens.

10. Escalate if the account looks wrong or you are being bounced around.

• For unresolved federal student aid problems, use the Federal Student Aid Feedback Center or FSA Ombudsman Group.
• For debt collection, servicing, or credit reporting problems, you can submit a CFPB complaint after trying the company or if the collection conduct seems wrong.

11. Keep a paper trail from this point on. Save screenshots of official loan status, keep a call log with dates and names, and follow up important points in writing when possible.