When signing for a student loan, the signee agrees to pay that loan back under the terms of the loan and the government takes these contracts very seriously. There is no way to wipe out a student loan except by repaying the loan. Once the loan has gone into default, you can track down the loan and negotiate affordable repayment terms yourself without the assistance of a costly lawyer or other representative. Ignoring a defaulted student loan can cause you to incur additional expenses, such as legal fees or garnishments.
Instructions
1. Find out who currently holds your loan by calling the U.S. Department of Education at (800) 4-FED-AID. Once a loan goes into default, it can change hands, which makes it difficult to know which agency to contact. The U.S. Department of Education keeps records of who holds all student loans.
2. Call the holder of your student loan to discuss repayment options. If the U.S. Department of Education holds your loan you can call (800) 621-3115. You may be eligible for a loan rehabilitation, which allows you to bring your loan out of default by making on time full payments for at least 10 months.
3. Contact your state's guaranty agency if your loan has been sent there. After a loan goes into default and attempts to receive payment on the loan have failed, the loan is sent to this agency for further attempts to collect on the loan. The U.S. Department of Education maintains a list of state guaranty agencies on its website (see Resources).
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