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Behind on Student Loans: Rehabilitation or Consolidation?

Use the free tool — Student Loan Plan Picker

What being in default means

If you are behind, StudentAid.gov explains that default blocks you from income-driven repayment (IDR) plans and from Public Service Loan Forgiveness (PSLF) until it is resolved. Getting out of default can stop wage garnishment and tax-refund offset. Do not ignore your servicer — the official steps are on the StudentAid.gov "Getting out of default" page.

Two official paths out

According to StudentAid.gov, there are two ways out of default:

• Rehabilitation — nine on-time, income-based payments in ten months.
• Consolidation — you combine your loans into a Direct Consolidation Loan. This step is required if you have FFEL or Perkins loans and want them eligible for PSLF and most IDR plans.

Consolidating can affect your payment counts and your interest. Confirm exactly what applies to your loans on the StudentAid.gov default page before choosing.

Which path might fit

If you have FFEL or Perkins loans, consolidation into a Direct Consolidation Loan is generally the first step before IDR or PSLF can apply. If you have Parent PLUS loans, plan options after consolidation are limited — check what's current on StudentAid.gov. Once you're out of default, the income-driven plans listed on StudentAid.gov may lower your payment, and the Loan Simulator will show your exact payment under each plan you qualify for.

Watch for scams

Applying for rehabilitation, consolidation, IDR, or PSLF is always free on StudentAid.gov. Per the FTC, never pay a company to do this for you — see FTC — student loan debt relief scams.

What to do next

This page is general information, not legal, tax, or financial advice, and it can be wrong — always confirm with your servicer and with StudentAid.gov before you act. The free tool reads your own loan type, balance, income, family size, and employer, and shows you which path — rehabilitation, consolidation, or a specific IDR plan — is likely to fit, in English or Spanish. Nothing you type is stored.

Student Loan Plan Picker explains federal repayment and forgiveness options in plain language from StudentAid.gov; it can be wrong, and it is not financial, tax or legal advice. Plan availability and terms change — the official site controls. Nothing you paste is stored.