Treasury and Education Departments Unveil Portal to Help Defaulted Student Loan Borrowers

A new Defaulted Loans Support Center is meant to help borrowers understand their choices, resolve default status and get back into repayment, according to the release.

Through the centralized portal, borrowers in default can learn more about the consequences of default, compare ways to exit default, apply online for loan rehabilitation or consolidation, make a payment on a defaulted loan, and review repayment plans and discharge options.

Available at StudentAid.gov, the Defaulted Loans Support Center replaces older websites and paper-based processes that relied on mail and fax, the release said.

Without leaving StudentAid.gov, borrowers can submit a loan rehabilitation application online, upload documents, review an estimated payment, electronically sign the agreement, track their 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 the portal is an early milestone for the Treasury-ED Federal Student Assistance Partnership and will give defaulted borrowers a clearer route back to repayment while creating a more efficient and accountable system for borrowers and taxpayers.

Education Secretary Linda McMahon said the portal brings together key resources for borrowers 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 that more than 9 million student loan borrowers had missed at least one payment in 2025, delinquency in the $1.7 trillion student loan market was rising after the end of the government’s post-pandemic payment amnesty, and about 44 million people were repaying student loans.

Credit reporting agency TransUnion reported that almost 30% of student loan borrowers were behind on payments and that millions of delinquent borrowers were facing involuntary collections from the Education Department, including wage garnishment or the withholding of tax refunds or Social Security benefits.