Borrowers with defaulted federal student loans could now get on the path to repayment with a new website aimed at helping them understand their options.
In a September 30 press release, the U.S. Department of Education and the U.S. Department of the Treasury announced the launch of the Defaulted Loans Support Center. The new online portal provides borrowers with defaulted federal student loans an easier way to understand ways to address the default and return to repayment.
The portal is part of the Trump Administration’s commitment to improve the administration of federal student aid programs as part of the ED-Treasury Federal Student Assistance Partnership. It replaces the former paper-based approach that has been in place for decades, allowing borrowers to quickly move from default back into repayment.
The Defaulted Loans Support Center provides borrowers in default with a streamlined way to understand the consequences of default and allows them to apply online for either rehabilitation or consolidation of their loans.
The new portal allows borrowers to complete the loan rehabilitation application online, upload documents, review an estimated payment, electronically sign their agreement, and track their progress without leaving StudentAid.gov. Borrowers can also use the portal to apply online for a consolidation loan and enroll in auto pay, allowing them the temporary one percent interest rate deduction.
Borrowers can access the new Defaulted Loans Support Center at: https://studentaid.gov/default-support/.
A fact sheet on the ED-Treasury Federal Student Assistance Partnership is also available.
