Default Rehabilitation vs. Consolidation Tool
If a federal student loan has gone into default, rehabilitation and consolidation are the two ways out, but they're not interchangeable — one may not even be available depending on where you are in the process. Answer a few questions about your situation, including whether wage garnishment has already started, to see which path actually fits.
Rehabilitation or consolidation — which fits your situation?
Both get a defaulted federal student loan out of default, but they work differently and aren't always both available to you at the same time. Answer these to see which one actually fits.
| If your situation is... | Fits better |
|---|---|
| Wages already being garnished | Rehabilitation — consolidation is generally unavailable once garnishment has started |
| Protecting PSLF or IDR forgiveness progress | Rehabilitation — consolidation creates a new loan, which can reset that progress |
| Getting "default" off your credit report | Rehabilitation — only completing it removes the default notation itself |
| Exiting default as fast as possible, no garnishment yet | Consolidation — needs 3 on-time payments or an IDR agreement, done sooner than rehab's 9 payments |
Is your wage currently being garnished, or has a garnishment notice already taken effect?
Do you have Public Service Loan Forgiveness (PSLF) or income-driven repayment forgiveness progress you don't want to lose?
What matters most to you right now?
General guidance based on how these programs typically work, not a guarantee for your specific loan — your servicer determines what you actually qualify for. See Federal Student Loans for the fuller comparison and federal student loan wage garnishment for how to request a hearing if garnishment has already started.
Questions about this calculator
Can I use consolidation to stop an active wage garnishment faster than rehabilitation?
Usually not — consolidation generally isn't available once active wage garnishment has already started, because consolidation takes 60-90 days while the garnishment notice window is only about 30 days. Rehabilitation, though slower to fully resolve, is typically the only realistic path once garnishment is already underway.
— US Debt Compass Editorial Team
Does rehabilitation stop collection immediately?
No — involuntary collection, including garnishment and tax-refund offset, generally continues until your 5th qualifying rehabilitation payment, not your 1st. Budget for that gap rather than assuming payments alone pause collection right away.
— US Debt Compass Editorial Team
Which option actually removes "default" from my credit report?
Only rehabilitation does. Consolidation pays off the defaulted loan but leaves the default itself as part of that new loan's permanent history, and it also creates a new loan, which can reset progress toward PSLF or IDR forgiveness — a risk rehabilitation avoids since it keeps the same loan.
— US Debt Compass Editorial Team