Defaulted Loans

Tackling Your Defaulted Student Loan

If you have defaulted on your student loans, the outstanding balance becomes immediately due, and you are no longer eligible for deferment or forbearance. If you are unable to repay the outstanding balance in full, but are willing to make payments toward your defaulted loans, UHEAA can help.

There are more ways than before to repay your defaulted student loans and certain programs can even remove your loans from default. A UHEAA representative can help you determine which repayment options are available to you and which option is right for you depending on what your objective is:

  • “I want to repay my defaulted student loans in monthly payments that are affordable to me.”
  • “My credit record is tarnished because of my defaulted student loan. Is there anything that I can do to improve my credit record?”
  • “I want to reestablish my eligibility for additional federal student aid and go back to school.”

The following repayment options may be available to you to bring your loans out of default:

Loan Rehabilitation: The Loan Rehabilitation program can remove your loans from default and return them to good standing. After completing Loan Rehabilitation, UHEAA will instruct all national consumer reporting agencies to remove the defaulted status from their records. Payments for Loan Rehabilitation are based on income and family size and can be as low as $5.00 per month. To rehabilitate your loans you must establish a payment arrangement by returning a signed Rehabilitation Agreement. You must also make nine months of voluntary, consecutive, and on-time payments. For more information about Loan Rehabilitation, please contact a UHEAA representative at the number listed below. 

Consolidation: Loan consolidation allows you to combine your existing federal education loans into a new Direct Consolidation loan that is in good standing. For more information about loan consolidation, please contact a UHEAA representative at the number listed below. 

By arranging to make payments you may be able to avoid some of the negative consequences of default, such as garnishment of wages, offset (seizure) of your federal and/or state income tax refunds and other federal payments.

In certain situations you may also qualify to have your federal student loans forgiven, cancelled or discharged. For more information regarding the forgiveness or discharge programs, please contact a UHEAA representative.

Don't Get Scammed

The options available to assist you with resolving your defaulted student loans (i.e. establishing a reasonable and affordable payment arrangement, applying for loan consolidation, and applying for loan discharge) are all available to you free of charge. Beware of any companies offering to assist you with these processes, particularly those charging a fee to do so. UHEAA representatives would be glad to assist you with these processes and work together to find a long-term repayment strategy! 


To process a free check-by-phone payment, please contact a UHEAA representative. You will need your bank routing number and your checking or savings account number to make the payment.

If you have established a payment arrangement to repay your defaulted loans, we recommend that you set up Direct Payment Authorization (DPA) to ensure your payments are made on time each month. DPA allows your monthly student loan payments to be automatically withdrawn from your checking or savings account. For more information about DPA, please contact a UHEAA representative at the number listed below

Contact Us

To speak with a UHEAA default representative please call (877) 336-7398.