Manage Student Loan Default

Get help with your defaulted student loan

You may have defaulted on your VSAC federal student loan, but don’t panic! VSAC is here to guide you and help you to make a fresh start. By making a plan now, you can end the consequences of default, including a ruined credit history, confiscation of your wages, federal and/or state tax refunds, or Social Security income to pay for your defaulted loans, loss of federal student aid eligibility—or even litigation.

You have options to get out of student loan default. The most important thing you can do is work with VSAC now. We’re here to help!

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Which option works best for you and helps you meet your goals? There are several options to fully repay or get your VSAC federal student loans—including Stafford, PLUS, and Consolidation loans—out of default. To learn more, read the details below.

If you still have questions, please call VSAC at 800-954-2440 or e-mail us at VSAC can help!  


Remove your default by making monthly payments through loan rehabilitation. 

Use VSAC’s loan rehab calculator to calculate your payment amount and apply online for loan rehabilitation!

Loan rehabilitation is a one-time offer that lets you make payments based on your current income and overall financial situation. This program helps you get back into repayment on your student loan and removes the default from your credit history.

Take advantage of our loan rehabilitation program! To qualify, you’ll need to agree to make 9 on-time monthly payments within 10 months. You may only rehabilitate a loan once.


We understand that you may not be able to make pay your full monthly payment. A loan rehabilitation payment amount is based on your financial situation. Here are some examples:

Example Adjusted Gross Income (AGI) State of Residence Family Size Monthly Payment
Single Person $16,000 Vermont 1 $5
Single Person $25,000 New Hampshire 1 $90
Married $25,000 Vermont 2 $13
Married with Children $80,000 Massachusetts 4



  1. Use VSAC’s loan rehab calculator to estimate monthly payments for your defaulted student loans, based on your financial situation. You can apply online or use the same link to print and sign a completed VSAC Loan Rehabilitation Agreement or Income and Expense Information form.

    You’ll need information from your most recent tax return, including Adjusted Gross Income and family size.

    Watch our video tutorial for more information on this option.

    Payment just right? If you accept the calculated monthly payment amount, provide VSAC with your tax return documentation showing your Adjusted Gross Income (AGI), family size, and state of residence. If you don't file taxes, please provide other proof of AGI, family size, and state of residence. For an online application, you can upload your documentation, or print, sign, and mail your agreement to VSAC.

    Payment too high? If the calculated monthly payment amount in step 1 is too high, you can request a lower payment by completing an Income and Expense Information form. To apply online, upload the completed form; or you can print, sign, and return the completed form. If approved, VSAC will send a VSAC Loan Rehabilitation Agreement for you to sign and return.

  2. Successful loan rehab! Make 9 on-time qualifying payments during a 10-month period. VSAC will send you a monthly bill. Be sure to make your payments on time!

  3. Credit repair. After you make your final payment, your loan will be transferred to a new loan servicer and VSAC will erase the default from your credit history. You also may be eligible for benefits and repayment options offered on your original loan.


Consolidating your loan. You can combine your federal loans into a single consolidated loan with payments based on your income and loan amount. Once your consolidation is approved and complete, your credit report is updated to reflect that your defaulted loans are paid in full.  Unlike the VSAC loan rehabilitation program, the record of the default is not removed from your credit history.

You'll make payments on your new Direct Consolidation Loan to a new loan servicer. To learn more, visit the Department of Education’s Federal Student Aid website.


You can begin making one-time or automatically recurring monthly payments on your defaulted VSAC federal loan. This won't get your loan out of default, so connect with VSAC to develop a plan to make a fresh start. Make payments now >


Forgiveness, cancellation, or discharge means that you no longer have to repay some or all of the money you borrowed. To take advantage of a forgiveness option, you must qualify for a program such as Total and Permanent Disability. To learn more about the types of forgiveness, cancellation, and discharge available for the different types of federal student loans, visit the Department of Education’s Federal Student Aid website.

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

Managing private loan default

If you’ve defaulted on a private student loan—such as a Vermont Advantage Loan (or an Extra, Law, or Medical Loan)—you have a few options that can help you get back on track. 

You can:

  • Pay your loan in full to avoid additional interest and collection fees
  • Pay your balance in full by making several large payments over a few months
  • Pay your balance in full by making regular monthly payments

Go to MyVSAC now

If you've defaulted on a Vermont Advantage Loan, please contact the collection agency that VSAC has contracted to collect your loan:

Windham Professionals 

Regional Adjustment Bureau, dba 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