The new Defaulted Loans Support Center is designed to help these borrowers understand their options, address default and return to repayment, according to the release.
With the resources available at this centralized portal, defaulted borrowers can better understand the consequences of default, compare available paths out of default, apply online for loan rehabilitation or consolidation, make a payment on a defaulted loan, and review repayment plans and loan discharge options, the release said.
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Available at StudentAid.gov, the Defaulted Loans Support Center replaces earlier, outdated websites as well as mail- and fax-based processes, per the release.
Without leaving StudentAid.gov, borrowers can complete the loan rehabilitation application online, upload documents, review an estimated payment, electronically sign their agreement, track progress, apply online to consolidate and access a temporary 1% interest rate reduction by enrolling in autopay, according to the release.
Treasury Secretary Scott Bessent said in the release: “The new Defaulted Loans Support Center marks an important early achievement of the Treasury-ED Federal Student Assistance Partnership, bringing Treasury’s unique financial and operational expertise to the program, providing defaulted borrowers a clearer path back to repayment, and building a more efficient and accountable system that better serves borrowers and taxpayers.”
Education Secretary Linda McMahon said in the release that the new portal streamlines critical sources for student loan borrowers who are in default and improves the administration of federal student aid programs.
“This is truly proof of concept for the Federal Student Assistance Partnership, bringing technology and expertise to build a better borrowing experience,” McMahon said.
The Financial Times reported in December that more than 9 million student loan borrowers had missed at least one payment in 2025, that delinquencies in the $1.7 trillion student loan market were soaring following the end of the government’s amnesty on loan payments following the COVID pandemic and that about 44 million people were paying off student loans.
Credit reporting agency TransUnion reported in September 2025 that almost 30% of student loan borrowers were behind on their payments and that millions of these delinquent borrowers were preparing for involuntary collections from the Education Department in the form of wage garnishment or the withholding of tax refunds or Social Security benefits.
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