How to get student loan out of collections?

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If you find yourself with a student loan in collections, it can be a stressful and overwhelming situation. However, there are steps you can take to address the issue and get your student loan out of collections. In this article, we will explore various strategies and options to help you navigate this process successfully.

Understanding the Situation

Before taking any action, it is important to understand the situation and the reasons why your student loan has ended up in collections. Contact your loan servicer or the collection agency to gather information about the outstanding debt, including the amount owed, any additional fees, and the timeline for repayment.

Review Your Options

Once you have a clear understanding of your situation, it’s time to review your options for getting your student loan out of collections. Here are a few strategies you can consider:

1. Rehabilitation: Loan rehabilitation is a process that allows you to make a series of consecutive on-time payments to bring your loan out of default. This option typically requires making nine monthly payments within a ten-month period. Once you complete the rehabilitation process, your loan will be considered out of default, and you may regain eligibility for benefits such as deferment, forbearance, and income-driven repayment plans.

2. Consolidation: Loan consolidation involves combining multiple federal student loans into a single loan. By consolidating your loans, you can simplify the repayment process and potentially lower your monthly payments. However, it’s important to note that consolidation may not remove your loan from collections immediately. It is crucial to contact your loan servicer or the collection agency to discuss the consolidation process and its impact on your loan status.

3. Negotiate a Settlement: In some cases, you may be able to negotiate a settlement with the collection agency. A settlement involves reaching an agreement to pay a reduced amount to satisfy the debt. It’s important to approach this option carefully and consider seeking professional advice to ensure you understand the potential consequences and implications of settling your student loan.

Take Action

Once you have decided on the best course of action, it’s time to take the necessary steps to get your student loan out of collections. Here are some actions you can take:

1. Contact the Collection Agency: Reach out to the collection agency handling your student loan to discuss your options and negotiate a repayment plan. Be prepared to provide any necessary documentation and information to support your case.

2. Establish a Repayment Plan: Work with the collection agency or your loan servicer to establish a repayment plan that fits your financial situation. It’s important to be proactive and demonstrate your commitment to resolving the debt.

3. Make Timely Payments: Once a repayment plan is in place, make sure to make your payments on time. Consistently meeting your payment obligations will help improve your credit score and demonstrate your financial responsibility.


Dealing with a student loan in collections can be challenging, but it’s not an impossible situation to overcome. By understanding your options, taking action, and staying committed to resolving the debt, you can successfully get your student loan out of collections. Remember to communicate with your loan servicer or the collection agency throughout the process and seek professional advice if needed.


– Federal Student Aid:
– Consumer Financial Protection Bureau:
– National Consumer Law Center: