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Loan Default

Default on a Federal Family Education Loan Program (FFELP) loan occurs when you fail to make payments and your loan reaches 270 days of delinquency. If your loan defaults, your balance becomes due in full immediately. Failure to pay the full balance will result in collection fees. Additional action including wage garnishment and seizure of income tax returns may occur.

In addition, a defaulted student loan may result in negative reporting to all the consumer reporting agencies.

For Federal Loans

If your loan is guaranteed by PHEAA:

Read our PHEAA Default FAQ to learn more about default and the consequences it can have on your federal student loans. There is also information about the Loan Rehabilitation Program.

If you are not sure who your guarantor is:

Sign in to NSLDS.ed.gov to view all your specific loan information, including guarantor.

For Private Education Loans

If you defaulted on a private education loan, each lender has specific guidelines to determine when a loan defaults. Please contact Graduate and Professional Services to discuss your loan.

Submitting a Credit Dispute

You may submit a dispute directly to PHEAA by downloading, printing, and mailing the Direct Credit Dispute Form (PDF) to:

PHEAA Default Collections
P.O. Box 61017
Harrisburg, PA 17106-1017

Or write to us at the address above with the following information:

  • Sufficient information for us to identify your account and loan in dispute. This includes your full name, address, PHEAA account number and specific loan in dispute. If you know the tradeline number associated with the loan, please include that information.
  • The specific information that you are disputing and an explanation of the basis for the dispute.
  • All supporting documentation or other information to substantiate the basis of the dispute. This documentation may include, for example a:
    • Copy of the relevant portion of the consumer report that contains the allegedly inaccurate information
    • Police report
    • Fraud or identify theft affidavit
    • Court order

You may also file a dispute with one or more consumer reporting agency.

NOTE: If you don't have your account number, sign in to Account Access to obtain it.

Loans in default?

If your loans are currently in default and you'd like to sign up for Direct Debit, please complete, sign, and submit the Direct Debit Default Collections Electronic Funds Transfer Agreement (PDF)

Completed Forms

Mail or fax your completed form to:

PHEAA Default Collections
P.O. Box 8147
Harrisburg, PA 17105-8147

Fax: (717) 720-3644