Student loan default and collections
A federal loan defaults after 270 days without payment. Wage garnishment and tax refund offset can follow, though the Department announced a delay of both on Jan. 16, 2026. Getting out of default is possible in several ways.
Tools
Guides
- Student loan default: what it means and what happensA federal loan defaults after 270 days without payment. Then it moves to the Default Resolution Group, and wage garnishment and tax refund offset become possible. Where collections stand in 2026.
- Getting out of student loan default: rehabilitation vs consolidationRehabilitation takes nine payments and removes the default from your credit history. Consolidation is faster but the record stays. From July 2027 you can rehabilitate twice.