Federal student loans go into default after 270 days of missed payments. If that’s your situation, you now have a new place for getting your student loans back on track. On Sept. 30, 2026, the Department of Education and Department of Treasury announced the launch of the Defaulted Loan Support Center, an online portal at StudentAid.gov.
The Defaulted Loans Support Center brings together tools for resolving default into one centralized hub. It also adds an online application for loan rehabilitation, which previously required borrowers to submit documents by mail or fax. Here’s how you can use the new portal to get your student loans out of default.
What is the Defaulted Loans Support Center?
The Defaulted Loans Support Center is a new online hub that was created through the ED-Treasury Federal Student Assistance Partnership. It brings together information and tools for dealing with federal student loans in default.
“The new Defaulted Loans Support Center marks an important early achievement of the Treasury-ED Federal Student Assistance Partnership, bringing Treasury’s unique financial and operational expertise to the program, providing defaulted borrowers a clearer path back to repayment, and building a more efficient and accountable system that better serves borrowers and taxpayers,” said Treasury Secretary Scott Bessent in a statement.
The Defaulted Loans Support Center is meant to give borrowers a simpler way to understand default and apply online for loan consolidation or rehabilitation. It may speed up the process for getting defaulted loans back into good standing, since borrowers will no longer have to send rehabilitation applications or documents by mail or fax.
What can borrowers do through the new portal?
Through the Defaulted Loans Support Center, you can learn about the consequences of defaulting on student loans and compare your options for getting out of default. You can also:
- Apply for loan consolidation or rehabilitation
- Upload documents that your application requires
- Electronically sign agreements
- Make payments on defaulted student loans
- Track your rehabilitation progress
- Review your repayment plan and loan discharge options
If you consolidate your student loans through the portal, you can also enroll in automatic payments to access the temporary 1% interest rate reduction. This rate discount is available to borrowers who enroll in autopay by Dec. 31, 2026 and will last through June 30, 2028.
How to use the Defaulted Loans Support Center
You can use the Defaulted Loans Support Center by taking these steps:
- Check the details of your loans: Sign into your account at StudentAid.gov to review your loan status. Federal loans go into delinquency right away after you miss a payment and into default after 270 days. You can also see who holds your loans. If you have older loans from the FFEL program, they may be held by a private lender or guaranty agency rather than the Education Department.
- Compare your options: Read through the requirements for rehabilitation and consolidation to determine which path is better for you. Both programs can have a different impact on your monthly payment amount and credit report.
- Gather your documents: Depending on which option you choose, you might need to provide documents like tax returns or pay stubs as proof of income.
- Sign your agreement: Review the details of your agreement before you sign. Find out if there are any other steps you have to take to get your loans out of default and back into good standing.
- Save your records: Hold on to copies of your application and documents, and set a reminder for your payment due dates. It may be wise to enroll in autopay so you don’t miss payments and can qualify for an interest rate discount.
How to get your student loans out of default
You have three main options for getting federal student loans out of default:
- Loan consolidation: This involves replacing your loans with a Direct Consolidation Loan. You might then choose to enroll in an income-driven repayment plan, which adjusts your monthly payments based on your income. Consolidation can be a relatively fast way to get your loans out of default, but it won’t remove the default from your credit report.
- Loan rehabilitation: Rehabilitation can take longer than consolidation, as it requires you to make nine on-time, voluntary payments within 10 consecutive months before your loans are out of default. On the plus side, rehabilitation will remove the default record from your credit report (though late payments might stay on there). Currently, you can only rehabilitate federal student loans one time. Starting on July 1, 2027, though, you’ll be allowed to use loan rehabilitation twice.
- Pay your loans off in full: Paying off your entire loan balance in one lump sum is also an option, though it’s probably unrealistic for most borrowers in default. Full repayment would stop any collections activities, but the default would remain on your credit report.
What happens after you get out of default?
By getting your student loans out of default, you’ll no longer have to deal with calls from debt collectors or involuntary collections like wage garnishment or withholding of your tax refund. You’ll also regain access to federal loan programs like income-driven repayment, deferment, and forbearance and become eligible again for federal student aid.
After you’ve consolidated or rehabilitated your loans, make sure to confirm your loan servicer, monthly payments, and due date. Enroll in autopay if it makes sense for you, and set up payment reminders for each month.
If your payments become unaffordable, explore options for relief and reach out to your loan servicer for help. Taking these proactive steps can help prevent your student loans from falling back into default.
Once your loans are back in good standing, you can also explore options like student loan refinancing to see if you qualify for a lower interest rate or repayment terms that better fit your financial goals. Just remember that refinancing federal loans with a private lender means losing federal loan benefits and protections.
