It’s the end of another crazy busy day—you’ve survived work, wrangled the kids, handled dinner (okay, maybe it was takeout), tackled the never-ending laundry pile, and managed a million other tasks.
Just when you think you can finally relax, you notice it: a letter from your student loan servicer.
With federal student loan payments restarting in October 2024, this can feel like a lot to handle, especially if you’re worried about falling behind or facing default. But here’s something important to remember—you are not alone in this. Life happens, and sometimes finances get tricky, but there’s always a way forward. You’ve got options, and with a little bit of guidance, you can get back on track.
If you’re wondering how to get student loans out of default fast online, programs like loan rehabilitation or consolidation can offer quick and accessible solutions to help you restart fresh.
Moms like Chonce Maddox have navigated these challenges, paying off $20,000 in loans—years ahead of schedule—while raising a family. Chonce’s story proves that with smart strategies, small steps, and the right resources, you can regain control of your loans and build a brighter future.
We’re going to walk through this process together, step by step. And I’ve got some simple tips (I call them mom hacks!) along the way to make this feel a little less overwhelming. You’ve got this!
How To Get Student Loans Out Of Default?
Step 1: Understand What Default Means (and How It Affects You)
Let’s first break down what default actually means. Defaulting on a student loan means you didn’t make payments as promised in your loan’s contract (called a promissory note). Here’s how default works:
- Federal Loans: Default occurs after 270 days (9 months) of missed payments. Federal Perkins loans, however, can default immediately after missing just one scheduled payment.
- Private Loans: Typically, private loans default after 90 days of missed payments. However, the exact timeline can vary, so it’s important to check your loan’s specific terms.
Delinquency v/s Default:
- Delinquent: A loan becomes delinquent the day after a missed payment, but this period gives you some time to act—federal loans aren’t reported to credit bureaus until they’re 90 days late.
- Default: Once in default, you face more severe consequences, such as wage garnishment, tax refund seizures, and damage to your credit score.
If you’re trying to understand how to bring student loans out of default, your two main options are loan rehabilitation and loan consolidation, both of which can help restore your financial standing and credit.
Avoiding default isn’t just about saving—it’s about stopping losses before they spiral. Default brings fees, higher interest, and missed opportunities.
Don’t wait—because the longer you do, the more you risk losing money.
What Happens If You Default On Student Loans?
By focusing on what you stand to lose, you’ll feel more motivated to act quickly. Defaulting on student loans has significant consequences, including:
- Garnished wages: The government can seize a portion of your wages or tax refunds to collect the defaulted amount.
- Damaged credit score: Your credit report will show your default, making it harder to secure future loans or get favorable interest rates.
- Increased loan amount: Default often adds fees and penalties to the loan, increasing the overall balance.
- Suspended education or professional licenses: In extreme cases, default can lead to suspended professional certifications, limiting your career options.
However, it’s important to note that default does not result in jail time. If your lender sues and wins a court judgment, failure to comply with the order could lead to legal issues, but simply being behind on payments won’t land you in jail.
Mom Hack: Create a dedicated folder for all your loan paperwork so it’s easy to access. Set a monthly reminder on your phone to check your loan status—it only takes five minutes but could save you from a lot of stress later.
And while you’re at it, this survey will only take 2 minutes. It’ll help us help you even better!
Step 2: Contact Your Loan Servicer (It’s Easier Than You Think)
If you’re struggling to keep up with your student loan payments or your loans are already in default (which means you’ve fallen way behind), the very first thing you should do is contact your loan servicer. Your loan servicer is the company that manages your student loan and sends you the bill. They can help explain what options are available to you, including how to get student loans out of default fast online through loan consolidation or rehabilitation programs.
Don’t Know If Your Loans Are In Default?
No worries, there are simple ways to check:
1. Log In To Studentaid.gov: If you have federal loans, visit this website and log in with your FSA ID (this is the ID you used when you applied for your student loans). Once you’re in, check the status of your loans. If it says “default,” you’ll know where you stand. This page will also tell you who your loan servicer is.
2. Check Your Credit Report: A credit report shows all your debts, including student loans, and will tell you if your loan is in default. You can get a free credit report once a week from Annualcreditreport.com. This will show any defaults under the “negative information” section.
Options For Recovering From Federal Loan Default
Rehabilitation: A Fresh Start
Loan rehabilitation is often the best way to get student loans out of default. Here’s how it works:-
- You make nine on-time monthly payments within 10 consecutive months.
- Payments are based on 15% of your discretionary income, but you can request a lower amount if needed.
- Once completed, the default is removed from your credit report, though previous late payments remain.
- How to bring student loans out of default fast online: Make sure your loan servicer processes all paperwork on time, and completes payments through their online portal for quick results.
Important: You can only rehabilitate a loan once, so make sure you can manage the payments after the process. Consider switching to an income-driven repayment plan (IDR) after rehabilitation to keep payments affordable.
Simplify and Manage With Loan Consolidation
If you’re juggling multiple loans, consolidation may be the way to go. Loan consolidation combines several federal loans into one new loan, with a single monthly payment.
Here are your consolidation options:
1. Make three on-time monthly payments on the defaulted loan OR
2. Agree to repay the new loan under an income-driven repayment (IDR) plan.
An IDR plan ties your monthly federal loan payment to your income, which can make payments much more manageable. There are several IDR plans, but they all offer similar benefits:
- Your payments are capped at a percentage of your income.
- After making payments for 20 to 25 years, any remaining loan balance may be forgiven (though it may be taxable as income).
Skipping loan consolidation now could cost you thousands over time. Don’t let those savings slip away!
After completing rehabilitation or consolidation, you can switch to an IDR plan to help keep your payments affordable and avoid future defaults.
Steps To Apply For An IDR Plan
1. Visit Studentaid.gov:
If you’re searching how to get student loans out of default fast online, the process starts with this portal.
Log in with your FSA ID at Studentaid.gov.
- This site gives you access to your loan information and the option to apply for IDR plans online.
2. Explore IDR Options:
- Use the Loan Simulator Tool on the site to see which IDR plan is best for you based on your income.
- Choose between plans like REPAYE, PAYE, IBR, or ICR, depending on your eligibility.
3. Submit Your Application:
- You can apply for an IDR plan directly through the site, providing your income information or giving permission for the IRS to share your tax data.
- The system will calculate your payments and suggest the best repayment plan for your situation.
Don’t do it alone. Sign up for our newsletter and get real, practical tips from moms who’ve been where you are.
(Unsubscribe At Any Time)
How To Get Private Student Loans Out Of Default?
1. Contacting Your Lender For Repayment Flexibility
Private lenders are often willing to work with borrowers to offer alternative repayment options such as:
- Forbearance: Temporary suspension of payments.
- Extended Repayment Plans: Lengthening the loan term to lower monthly payments.
- Interest-Only Payments: Paying only the interest for a set period, which can make monthly payments more affordable.
2. Private Loan Consolidation or Refinancing
Private loan consolidation is similar to federal loan consolidation in that it combines multiple loans into one. However, refinancing with a private lender may be a better option for lowering your interest rate or getting a lower monthly payment, based on your current financial situation.
How To Do It:
- Shop around for private lenders offering favorable refinancing terms.
- Check your credit score, as many lenders require a solid credit history to qualify for the best rates.
- Choose a repayment term and interest rate that fits your budget.:
- Private loan refinancing platforms: SoFi, Earnest, LendKey, and Credible can compare multiple lenders at once.
Chonce’s advice? “Don’t wait until things get out of hand. Reach out early. The earlier you contact your servicer, the more options you’ll have.”
Mom Hack: Join our exclusive Facebook group designed for women and moms who’ve mastered the art of juggling life, work, and sanity (well, most days). Get advice, share wins, and remember: no judgment, just support.
Your Go-To Resources For Student Loan Help
Got student loans? No worries—these resources have your back.
- TISLA: Expert advice on repayment, forgiveness, and disputes.
- NCLC: All the info you need about loan options and borrower rights.
- SBPC: Fighting for policies that put borrowers first.
- NFCC: Get a full financial check-up and loan advice.
- ACCC: Help with plans, paperwork, and budgeting.
- SDCC: Free workshops and 1-on-1 support for borrowers.
- NACA: Find lawyers and know your rights.
Step 3: Automate Your Payments To Avoid Default
Chonce swears by automation: “With everything else going on, autopay saved me. It was one less thing to worry about.”
This ensures you never miss a payment, even on your busiest days. Plus, many servicers offer a small interest rate discount for using autopay—so it’s a smart move all around.
Step 4: Choose The Right Repayment Plan For You
Picking the right repayment plan is key to keeping your finances manageable. Federal loans offer several repayment options:
Federal Repayment Plans
1. Standard Repayment Plan:
- Fixed payments over 10 years.
- Best if you can afford slightly higher payments and want to pay off your loans faster.
Chonce started with this plan but paid off her loans in three years by making extra payments and using side income wisely. “I wanted to clear my debt fast, so I focused on my high-interest loans first,” she says.
2. Graduated Repayment Plan:
- Payments start low and increase every 2 years.
- Works well if you expect your income to grow over time.
3. Extended Repayment Plan:
- Spreads payments over 25 years, reducing monthly amounts.
- This helps if you need lower payments, but you’ll pay more interest overall.
4. Income-Driven Repayment (IDR) Plans:
- Adjusts your payments based on income and family size.
- Popular plans include IBR, PAYE, REPAYE, and the SAVE Plan. These can even reduce your payment to $0 per month if your income is low.
Mom Hack: Set your recertification reminder during tax season when you already have your income documents handy—it’s one less thing to stress about.
Step 5: Make Small Sacrifices That Add Up
To get ahead on her payments, Chonce chose to stay in her college-town apartment instead of moving closer to work. “My rent was $660 a month, which was way cheaper than living near my job,” she explains.
She also picked up side hustles as a brand ambassador and product demonstrator, earning $20-$25 an hour. “Even just $100 extra a week added up to $400 a month. It gave me some breathing room.”
The key to avoiding default is staying proactive. Chonce recommends setting small, achievable goals to keep yourself on track.
Her advice? “Even if it’s just an extra $50 a month, it makes a difference. It’s about doing what you can, when you can.”
Ready to get ahead on your finances like Chonce?
Our budgeting ebook is exactly what you need! It’s packed with easy tips and strategies to help you make small changes that add up to big results.
(By subscribing, you agree to our terms & conditions, privacy policy, and disclaimer. Unsubscribe any time.)
Mom Hack: Review your top three monthly expenses (like rent, groceries, or gas) and see where you can cut back. Even a small reduction—like saving $50 a month on groceries—can make a difference.
You’ve Got This, Mama!
Managing student loans isn’t easy, especially when you’re juggling family, work, and everything else. But just like Chonce Maddox proved, small, intentional steps can lead to big progress. Whether it’s cutting expenses, setting up autopay, or finding a side hustle, every little bit helps.
Remember: You’re not just managing debt—you’re building a better future for yourself and your family. And with each payment, you’re one step closer to financial freedom.
Let’s keep lifting each other up—share your tips in the comments below! We’re in this together, mama.
Got a tip for fellow moms on managing loans while parenting? Share it with us, and we’ll highlight it in our next post!
Did you take our Reader Survey? If not, it only takes 1 minute and you can take our survey here.
FAQs
What is the quickest way to get student loans out of default?
Use loan consolidation for federal loans or refinance private loans to get out of default fast.
Can you bring a student loan out of default?
Yes. Federal loans need rehabilitation or consolidation, and private loans require talking to your lender or refinancing.
Can my defaulted student loans be forgiven?
Federal loans can be forgiven after getting out of default. Private loans usually don’t offer forgiveness.
Can you settle student loans in default?
Yes, private loans can be settled by paying part of the debt. Federal loan settlements are rare.
