The Department of Education will restart collections of defaulted student loans on May 5, and experts say defaulted borrowers should take 🌄action now to get back in𝓀to good standing.

The 5 million borrowers who are in default could have their wages garnished if they can't get back into good standing, according to the Department of Education. This means money would be withheld from borrowers' paychecks, tax refunds and Social Security benefits to pay what they owe.

Experts say there are two main wa🅷ys for borrowers with defaulted loans to get into good 🔴standing and avoid wage garnishments.

"[Borrowers should] start educating themselves about consolidation and rehabilitation, and consider reaching out now, rather than wait for communication," said Betsy Mayotte, president of The Institute🍃 of Student Loan Advisors. "You can get started on those processes now. If they log into , they can see who they need to contact to get the process rolling."

Both loan consolidation and rehabilitation can only be done once, so borrowers need to understand which option is best for🙈 their circumstances before starting the process.

Loan Consolidation

One way to get a loan out of default is to apply for student loan consolidation. This process pays off multiple student loans to combine them into a single loan, bringing the borrower out of default.

A borrower must sign up for an income-driven repayment plan or make three consecutive, voluntary, on-time full monthly payments on the defaulᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚted loan to co🤪nsolidate.

However, the accrued interest is added to the balance once a loan is consolidated. Additionally, while a borrower is brought out of default, the record of the default and the late payments before it will still remain on their credit report.

Loan Rehabilitation

Loan rehabilitation can take longer than consolidation, but it takes the defaulted loan off a borrower's credit report and does not add accrued interest to the balance.

To rehabilitate a loan and get back into good standing, a borrower must agree to and make nine voluntary, reasonable, and affordable monthly payments over ten consecutive months, as determined by their 🎉loan servicer.