Defaulting on a student loan

Official information on student loan defaults can be found here:

http://www.ed.gov/offices/OSFAP/DCS/index.html
http://www.finaid.org/loans/default.phtml

The United States Department of Education's Collections Department is tasked to assist those with loan defaults by making repayment of their debts a very simple process.

A guarantee agency is first assigned for the loan in default for eventual collection. This agency is usually an organization in charge of the FFEL program for your specific state. On a regular basis, the guarantee agency will assign loans to the Department of Education for collection.

For Federal Perkins Loans

When in default, the Federal Perkins Loans might remain with the university or be reassigned to the Department of Education for collection or repayment.