Get Out of Student Loan Default: Legal Touch Handles Your Consolidation

Default can mean wage garnishment, seized tax refunds, reduced Social Security checks, and collection calls. There are ways out, and one of the fastest is a Direct Consolidation Loan. Legal Touch lays out your options and does all the work for you.

What Student Loan Default Means

Most federal loans go into default after about 270 days without a payment. Once in default, the full balance can be due right away, collection costs can be added, and the government can collect without going to court.

Ways Out of Default

• Consolidation: a new Direct Consolidation Loan pays off the defaulted loans, often in a few weeks to a couple of months.
• Rehabilitation: 9 affordable monthly payments, and the default record can come off your credit report.
• Discharge: if you qualify for Borrower Defense, Closed School, or TPD discharge, your loans may be canceled instead.

Learn more in our federal loan consolidation guide.

Check This Before Consolidating

Consolidation isn't right for everyone. It can change which Borrower Defense rule applies to your loans and can affect other deadlines. That's why we review your full loan history first and tell you if another route is better.

What Legal Touch Does for You ($495 Flat Fee)

1. We pull and review your federal aid data and default status.
2. We compare consolidation, rehabilitation, and any discharge you may qualify for.
3. We prepare and file the Direct Consolidation application.
4. We set you up on the lowest income-driven plan you qualify for.
5. We contact the collection agency to request that garnishment and offsets stop once the loans are paid off.
6. We confirm your new loan is in good standing.

Free Options You Should Know About

You can apply for consolidation free at studentaid.gov or contact the Default Resolution Group directly. Legal Touch is for borrowers who want an experienced team to handle it.

Frequently Asked Questions

How does consolidation get my loans out of default?

A Direct Consolidation Loan pays off the defaulted loans with a new loan that starts in good standing, usually on an income-driven plan. We handle the application.

Is consolidation or rehabilitation better?

It depends. Rehabilitation takes 9 payments and can remove the default from your credit report. Consolidation is often faster. We lay out both before anything is done.

Can consolidation hurt my other options?

It can. Consolidating may change which Borrower Defense rule applies and can reset some deadlines. We check this first and will tell you if waiting is better.

Does Legal Touch guarantee results?

No. Your loan holder and the U.S. Department of Education make every decision. Legal Touch is not a law firm and makes no guarantees.

Get Your Free Default Review

Check My Eligibility or call 800-261-2946.

Questions first? Contact our team.

Legal Touch is not a law firm and does not give legal advice. Results are not guaranteed. Every decision is made by the U.S. Department of Education or your loan holder. Free help is available at studentaid.gov.