After missing a certain number of payments toward your student loans, you risk loan default and collections. While collections on defaulted federal student loans were paused for five years, the U.S. Education Department resumed collections in May 2025.
When default happens, your original student loan servicer will transfer the debt to the Education Department’s Default Resolution Group. The DRG oversees your loans while helping you get out of default. Once your loans are back in good standing, it will send your loans back to a servicer.
If you’re unable to resume payments, the consequences can be rough. DRG will handle collections or send your debt to a private collections agency that will contact you. You’ll face collections fees, your wages can be garnished, and your tax refunds or Social Security benefits can be seized.
What Default Resolution Group does for student loan borrowers
Borrowers with defaulted federal student loans can work with the Default Resolution Group to bring their debt back into good standing. Student loan consolidation or rehabilitation are two ways to get out of default.
- Consolidation. Student loan consolidation can help you get out of default fast. To qualify, you must make three full, on-time consecutive payments or agree to make payments on an income-driven repayment plan. With consolidation, the default remains on your credit report for up to seven years.
- Rehabilitation. Loan rehabilitation removes the default from your credit report, and you won’t incur additional collection costs on top of your loan balance. You must agree to make nine affordable monthly payments consecutively over 10 months.
» MORE: How to get student loan help
How to contact Default Resolution Group
Phone number for general questions: 1-800-621-3115.
Email address: Use the online form.
Website: myeddebt.ed.gov.
Regular correspondence address:
U.S. Department of Education
P.O. Box 5609
Greenville, TX 75403-5609
Payment address:
U.S. Department of Education
National Payment Center
P.O. Box 790336
St. Louis, MO 63179-0336
How to complain about Default Resolution Group
If you have difficulty working with Default Resolution Group, file a complaint with its customer service department.
If your issue goes unresolved, you can also make complaints about Default Resolution Group to:
You can also reach out to a student loan nonprofit such as The Institute of Student Loan Advisors, which provides free dispute resolution.
Make sure to keep records of conversations you have, including the day, time and customer service representative you spoke with. Keep copies of any letters, bills or emails about your account.
