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Manage Student Loan Default

Get help with your defaulted student loan

You may have defaulted on your VSAC student loan, but don’t panic! VSAC is here to help you make a fresh start. Make a plan now to end the consequences of default.

If you have a private student loan in default with VSAC, or a federal loan (Federal Family Education loan or Direct Lending) click the tabs below for information based on the type of loan you borrowed.

You have options to get out of student loan default. The most important thing you can do is work with your servicer to get the help you need!

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Families generally borrow private loans to cover college costs that remain after borrowing federal loans. VSAC private loans include Vermont Advantage loans or other VSAC-administered non-federal student loans. 

Make a plan now to end the consequences of default on your VSAC private loan:

  • placement with a collection agency
  • a ruined credit history
  • confiscation of state tax refunds, property tax adjustments and/or renter rebates through the Vermont Setoff Debt Collection Program to pay for your defaulted loan(s)
  • or even a lawsuit against you.

Got a goal? Let VSAC help you reach it!

You have options available to get out of default on your VSAC private loan. Read the details below and if you still have questions, please call VSAC at 800-954-2440 or e-mail us at VSAC can help!


Remove your private loan default by making monthly payments through VSAC’s Private Loan Rehabilitation Program. Private loan rehabilitation is a one-time program that helps you get back into repayment!

How it works.

  • Qualifying monthly payment amount is calculated based on your current balance and interest rate. The loan term is 30 years for variable interest rate loans or 20 years for fixed interest rate loans.

    What's next? Contact VSAC to determine your qualifying monthly payment amount and request a Private Loan Rehabilitation Agreement. Borrowers and any cosigner must each sign an agreement to participate.

  • To qualify, you have to make 9 on-time payments within a 10-month period.

    What's next? Start making required payments after you contact VSAC.

  • Successfully completing the Loan Rehabilitation Program removes the default from your credit history and may improve your credit rating.

    What's next? You may be on the path for meeting your goal!

  • Eligibility for additional benefits upon successful loan rehabilitation, such as potential for limited short-term forbearance based on financial hardship and cosigner release.

    What's next? More benefits!


You can begin making one-time or automatically recurring monthly payments on your defaulted VSAC private loan. Making unapproved payments will not remove your loan from default, so connect with VSAC to develop an approved payment plan and make a fresh start. Make payments now >


VSAC also works with collection agencies to support student loan repayment, while ensuring that borrowers with loans in default are aware of the consequences of their failure to repay and are aware of the options available to help them get out of default. VSAC currently partners with the following agencies for collection expertise.

Radius Global Solutions LLC
Credit Control LLC 

If you don't know which agency is currently collecting your loan, please call us at 800-954-2440.

Beware of Student Loan Default Scams

You should never pay for help with managing your loan default. VSAC will help you for free. To learn more about avoiding scams, visit

If you defaulted on any of your federal student loans, not previously serviced by VSAC, contact the organization that notified you of the default as soon as possible so you can explain your situation fully and discuss your options.

VSAC serviced defaulted federal loan(s) were transferred to Trellis over the weekend of March 16, 2024.  Trellis can be reached by phone at (800) 222-6297.

Click here for information on determining who your current loan servicer is.
Click here to learn about ways to get your loans out of default.

Beware of Student Loan Default Scams

You should never pay for help with managing your loan default. VSAC will help you for free. Learn more about avoiding scams at