Get Your Loans Out of Default

Where to Go for Help

If you are having problems managing your loan payments, contact the holder of your loans, or contact EAC.

We'll be happy to provide you information, explain your options, or direct you to the agency that can best meet your needs.

Possible Ways to Resolve Default
(Regardless of Your Income)

Rehabilitation
Rehabilitation is a program developed to help you resolve the default on your student loan through consistent, on time payments.

Contact your guarantor (such as EAC) to set up a monthly payment that is manageable, and make your monthly payments on time, every time. After nine payments have been made on time during ten consecutive months, your loan is considered "rehabilitated."

Once your loan is rehabilitated, it is taken out of default. The default reports that were sent to the national credit bureaus are deleted. You will be given up to nine additional years to repay the loan while continuing to make your monthly payments.

Loan Consolidation
Consolidation helps you consolidate defaulted loan(s) into a new loan.

Contact your guarantor to discuss what type of consolidation loan would be best for your situation.

The consolidation creates a new loan that you can keep in a current status by making your payments on time, every time.

Pay Off
The quickest way to resolve the default and say goodbye to your student loan debt forever is to pay it in full.

To do this, simply contact the holder of your loan for the current pay-off balance and the address of where to send the payment.

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The Benefits of Getting Your Loan Out of Default

Why should you resolve the default on your student loans?

Your Credit
Defaulting on your student loans seriously damaged your credit. But resolving the default can get you on the right track. No matter which method you choose (rehabilitation, consolidation, or pay off), each improves your credit. Contact your Default Collection Counselor to make arrangements by e-mail at EAC@eac-easci.org or by phone at 1-800-874-8982.

Stop Wage Garnishment
If your wages are being garnished, this stops once you've resolved the default on your student loan. Contact your Default Collection Counselor to make arrangements by e-mail at EAC@eac-easci.org or by phone at 1-800-874-8982.

Get Your Tax Refund
Have you been missing the refunds on your tax returns? Resolving your default will mean you will begin receiving those again. Contact your Default Collection Counselor to make arrangements by e-mail at EAC@eac-easci.org or by phone at 1-800-874-8982. You may qualify to have your account removed from the offset of Federal refunds due.

Return to School
Do you want to go back to school but are ineligible for financial aid because of your default? Once you've resolved your default, you may be eligible for Federal student aid again. Contact your Default Collection Counselor to make arrangements by e-mail at EAC@eac.easci.org or by phone at 1-800-874-8982.

Ombudsman

If you have a student loan dispute or a problem that you can't resolve with your school or lender, you may contact Ellen Welke, Ombudsman for Education Assistance Corporation, at 1-800-592-1802, ext. 4340. If you have a dispute or problem that you can't resolve with EAC or another guarantor, you may contact the Student Financial Aid Ombudsman's Office at 1-877-557-2575.

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