Don t get discouraged if you're in default on your federal student loan. 
You have multiple options to get out of default. If you failed to make your payments on your federal student loan and now are in default , don t let the consequences of default affect your financial future. Find out how to get out of default. Stopped Collection Activity and Temporary 0% Interest as a Result of the COVID-19 National Emergency To provide relief during the COVID-19 national emergency , the U.S. Department of Education ED has stopped collection activity on defaulted federally owned student loans and/or grant overpayments. In addition , interest is temporarily set at 0% on defaulted federally owned student aid debt. This 0% interest and stopped collections period will last from March 13 , 2020, through Sept. 30 , 2020. You can still make payments if you choose. Have questions? Find out about federal student aid flexibilities due to the COVID-19 national emergency. One way to get out of default is to repay the defaulted loan in full , but that's not a practical option for most borrowers. The two main ways to get out of default are loan rehabilitation and loan consolidation. While loan rehabilitation takes several months to complete , you can quickly apply for loan consolidation. However , loan rehabilitation provides certain benefits that are not available through loan consolidation. Take a look at the chart below to compare the benefits of loan rehabilitation versus the benefits of loan consolidation. Loan Rehabilitation and Consolidation Comparison Chart * NOTE : We previously indicated that loan consolidation would result in removal of the record of default from a borrower s credit history. That cell of the table has now been corrected to indicate that loan consolidation will not result in removal of the record of default from the borrower s credit history. If you rehabilitate a defaulted loan , the record of the default will be removed from your credit history. However , your 

user: Are there options if I am in default on my federal student loans?

assistant: Yes, you have many options to help you get out of default on your federal student loans.

assistant: Have you failed to make your payments on your federal student loans?

user: Yes, I have not made payments lately and are in default.

assistant: You can find out how to get out of default and not let your current consequences of default ruin your financial future.

user: What happens after defaulted loans have been consolidated?

assistant: Your Direct Consolidation Loan will be eligible for benefits such as deferment, forbearance, and loan forgiveness and you could receive additional financial aid; and the defaulted loan would still be on your record of credit history.

user: What are the actual benefits to me with loan rehabilitation?

assistant: Are you asking the benefits of when a student loan is in rehabilitation?

user: Yes, that is what I want to know.

assistant: The default status will be removed from your loan and any garnishments will be stopped.

user: Will eligibility for additional benefits be available for me again?

assistant: Yes, you will be able to apply for a deferment, forbearance, choice of repayment plans or loan forgiveness and can be eligible for more student aid and default will be removed from your credit history.