My dh recently defaulted on his student loans which was with Direct Loans. He received a letter yesterday giving the amount of the loan and the actions that can be taken. The letter also states that the U.S. Department of Education's Debt Collection Service is now handling the loan. It is no longer with The Direct Loan Servicing Center. Is there anything that can be done now get things back on track? I want to see if something can be done before his wages are garnished.

You need to ask them about student loan rehab. They will work with you set a monthly payment. Then you will need to make 12 consecutive on time payments. After that, they will take your loan out of default. See this link. http://www.ed.gov/offices/OSFAP/DCS/rehabilitation.html

He needs to contact the debt collection service or CA he has been assingned to. He probably will want to rehab his loans, making 12 on time monthly payments to get out of default.

If the loans are in default, but not gone into collections I would suggest you contact **SCAM COMPANY!! They can probibly help you, or at least explain to you your options. **SPAM REMOVED

Actually, that's also what we're here for -- to help with options (and we don't charge). Soliciting is prohibited by CB's TOS.

Rehab is definitely the best option -- it allows for a "clean slate" (at least to some degree) after you're finished. You can consolidate after rehab is over. The key is you have to specifically ask for rehab -- it's sort of like a "secret handshake" thing. They're required to allow you to rehab your loans, but they aren't required to bring it up. If you do a search of this forum, you'll find a ton of information on rehab on these boards. Direct Loans are definitely the good ones to have -- they remove ALL of the negative information after rehab (they're only required to remove the default notation, which is what a lot of guarantors do).

Hope this helps!! Good luck!!