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Student Loan Debt? You Have Options

As of May 5, 2025, the federal government has resumed collections on defaulted student loans, ending a multi-year pause that began in March 2020. With evolving student loan policies and repayment programs, it’s more important than ever to stay informed. If your loans are delinquent, you could now be at risk of default – so understanding your options and taking timely action is essential. Whether you’re current, behind, or unsure of your status, GreenPath is here to help.

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Understanding Delinquency vs. Default

DelinquentDefault
What is it? You’ve missed one or more payments. Payments haven’t been made for 270+ days (for Direct and FFEL loans) or immediately for Perkins Loans. 
Consequences 
  • Negative impact on credit score
  • Late fees
  • Entire loan balance becomes due
  • Wage garnishment
  • Ineligibility for deferment, forbearance, or future aid
How to fix it 
  • Catch up on missed payments
  • Apply for deferment, forbearance, or a new repayment plan
  • Loan rehabilitation
  • Loan consolidation
  • Pay loan in full

Important: If your loans remain delinquent for too long, they can go into default — which has more serious financial and legal consequences. Take action early to avoid default. 

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What Are Your Options?

Standard Repayment Plan

Make fixed monthly payments over about ten years. While this option has higher monthly payments, it results in lower total interest paid. Ideal if you can afford consistent payments.

Learn More

Income-Driven Repayment (IDR) Plans

Make payments based on your income with options like: 

  • SAVE (Saving on a Valuable Education) 
  • PAYE (Pay As You Earn) 
  • IBR (Income-Based Repayment) 
  • ICR (Income-Contingent Repayment) 

Income-Driven Repayment (IDR) Plans can lower your monthly payment—but they may extend your loan term and increase total interest.

Apply For IDR

Loan Rehabilitation (For Loans in Default)

Loan rehabilitation lets you bring a defaulted federal loan back into good standing by making nine monthly payments on time. 

Benefits: 

  • Restores eligibility for aid and repayment plans 
  • Removes default from your credit report 
  • Stops wage garnishment and tax refund offsets 

How to Start: 
Contact your loan servicer as soon as possible to set up a payment plan based on your income.  

Note: All IDR plans require annual recertification of income and family size and are subject to change. Stay informed about ongoing student loan policy updates. 

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Additional Tools & Resources

  • Loan Simulator
    Estimate your payments and compare plans based on your income, family size, and goals.
  • AI Assistant Aidan®
    Chat with a virtual assistant for instant student loan answers at studentaid.gov.
  • Public Service Loan Forgiveness (PSLF)
    If you work in nonprofit, military, or government sectors, you may qualify for total loan forgiveness.
  • Extended Servicer Hours
    Many loan servicers now offer evening and weekend support—call them directly for assistance..

3 Steps to Take Now

1. Contact Your Loan Servicer
Don’t delay—connect with your loan servicer to understand your repayment status and available options. Ask about deferment, forbearance, or hardship programs.  

2. Review Your Credit Report
Check for errors or signs of delinquency. Visit AnnualCreditReport.com for your free reports from all three bureaus. 

3. Talk to GreenPath
Get judgment-free help from an NFCC-certified GreenPath counselor. We’ll help you: 

  • Review your student loan types and statuses 
  • Explore your repayment and relief options 
  • Build a custom financial wellness plan 

Call us at 800-550-1961877-337-3399 or contact us onlinecontact us online

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