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In person financial aid services are centralized for all CR locations at the Eureka campus. 

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Student Services Building

Fall 2023 Hours

Monday – Thursday




Defaulted on a Student Loan?


Defaulting on a Student Loan | What You Need To Know

If you do not make your loan payments you will become delinquent on your loan and will be at risk of defaulting on your student loan. Defaulting on your loan will result in your student loan being sent to collections. We are going to go over some key information about what happens if you default on your student loan and what the options are of getting your loans back to good standing. These options are for student loans that are through the Department of Education, not all student loans go through the Department of Education such as private student loans.



What is delinquency?

Your student loan will become delinquent the day after you miss a payment, even if you miss one payment and you begin to make payments later, you are still delinquent until you repay the past due amount.

The effects of delinquency:

If you are more than 90 days delinquent, your loan servicer will report the delinquency to all the major national credit bureaus, this will lower your credit score and affect your finances. With a poor credit score you will have difficulty obtaining credit cards, auto loans and forms of consumer credit. You may also have trouble getting a cell phone plan, getting approved to rent an apartment and even signing up for utilities.

How to avoid delinquency:

If you find you are having difficulty making payments on your student loans, always contact your loan servicer. There are lots of options available to help keep your loan in good standing. Some of those options include: Deferment of payment, Forbearance, or changing your repayment plan.



What is Default?

For a loan made under the William D. Ford Federal Direct Loan Program or the Federal Family Education Loan Program, you’re considered to be in default if you don’t make your scheduled student loan payments for a period of at least 270 days (about nine months).

The Effects of Default:

When you default on your student loan a series of consequences will occur, the following are those consequences:

  • The entire unpaid balance becomes immediately due including any interest that is owed.
  • You lose the ability to request a deference or forbearance, you also lose the ability to choose a repayment plan.
  • You will lose eligibility for student financial aid.
  • Your credit will be further affected, you will not be able to purchase a car, house or obtain a credit card.
  • Any tax refunds may be withheld and applied to defaulted loan.
  • Your wages will be garnished.
  • You can be taken to court by your loan holder.
  • You will be liable for court charges, collection fees, attorney fees, and other costs with the collection process.
  • It can take years to reestablish a good credit record.
  • College of the Redwoods can withhold your academic records such as your transcripts.


Default student loan video:




How do I check my loans?

Self Service:

Do you know who your loan servicer is or was? Do you know if you are delinquent or in default? If you do not know the answer to these questions, please visit and log in using your FSA ID and Password. You will be able to see your current loan debt, your current loan servicer and current status of your loans. If you don’t have an FSA ID and Password you can create one. If you have been locked out of your FSA ID and admin support is needed, please call the FSA ID Help Center at: 1-800-433-3243.

College of the Redwoods Assistance:

If you are a College of the Redwoods student or were a College of the Redwoods student, you can contact our Financial Aid Office at 707-476-4182 or


Your options for getting out of default:

There are three options for getting out of loan default. Option 1. Pay the defaulted loan in full, Option 2. Consolidate defaulted loans, or Option 3. Rehabilitate your defaulted loan. We recommend calling the defaulted student loan line through the Department of Education to get detailed information on how these options work for your particular situation, please call 1-800-621-3115. Applying for these options is FREE. Third parties may contact you and try charging a fee to do this on your behalf, but they are not affiliated with the Department of Education. Use the expanders below to learn more about each option, including pros and cons.


You may pay off the defaulted loan debt by contacting your loan holder, to find out who is holding your defaulted loan please visit or calling 1-800-621-3115.


Loan consolidation allows you to pay off one or more federal student loans with a new consolidation loan. To consolidate a federal student loan, you must do one of the following:

    • Agree to repay the new consolidated direct loan under an income driven repayment plan.


    • Make three consecutive, voluntary, on time, monthly payments on the defaulted loans before consolidating the defaulted loan.

Pros of loan consolidation:

    • Quickest method of getting out of default
    • Eligible for: forbearance, deferment, loan forgiveness, and to receive financial aid.

Cons of Loan Consolidation:

    • Limitations to repayment plan options
    • Defaulted loan will not be removed from credit history


Loan rehabilitation allows you to make payments on the defaulted loan with the ability to get the loan out of default and back into good standing. In order to rehabilitate a defaulted loan you must agree to the following:

    • Agree in writing to make nine (9) voluntary, reasonable and affordable monthly payments (determined by loan holder) within 20 days of the due date.
    • Make all nine (9) payments during a period of ten (10) consecutive months.

If you can’t afford the initial monthly payment amount as determined, you can ask your loan holder to calculate an alternative monthly payment based on the amount of your monthly income that remains after reasonable amounts for your monthly expenses have been subtracted.

Depending on your income, your monthly payments could be as LOW as $5 a month.

Note: To rehabilitate a defaulted Federal Perkins Loan, you must make a full monthly payment each month, within 20 days of the due date, for nine consecutive months. Your required monthly payment amount is determined by your loan holder.

Pros of Loan Rehabilitation:

    • Eligible for: forbearance, deferment, loan forgiveness, repayment plans and to receive financial aid.
    • Defaulted loan will be removed from credit history

Cons of Loan Rehabilitation:

    • One-time option, do not miss a payment and do not default on the loan again.
    • Takes longer than loan consolidation
    • If you are experiencing wage garnishment, wage garnishment will continue until the loan is fully rehabilitated.




If you are ready to consolidate your student loan or begin the rehabilitation process, you start by calling or applying online. We recommend that students call the Department of Education to learn more about what their options are and to receive guidance on the application process. When applying for consolidation or rehabilitation, make sure your student loan is through the department of education. It is possible that your defaulted loan was not sent to the Department of Education and is being held by the guarantor and their loan servicer.




By Phone (Recommended):

  • If your student loan is held by collections through the Department of Education, call: 1-800-621-3115
  • If your student loan is being held by a different servicer, please contact that servicer.



By phone (Recommended):

  • If your student loan is held by collections through the Department of Education, call: 1-800-621-3115
  • If your student loan is being held by a different servicer, please contact that servicer.

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