Default Resolution Group: US Dept of Ed Defaults on Your Credit Report

The Default Resolution Group (DRG) is the U.S. Department of Education’s servicer for federal student loans in default. If your federal loan went more than 360 days without a payment, it was likely transferred to the DRG, and it may now appear on your credit report as US DEPT ED, US DEPARTMENT OF EDU, or U S DEPT OF ED/GSL/ATL.

This guide covers how to contact the DRG, how a defaulted loan shows up on your credit report, why it often appears more than once, and how to dispute a default that’s wrong or get a loan out of default.

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What Is the Default Resolution Group?

The Default Resolution Group is the part of the Department of Education that services defaulted federal student loans. A Direct Loan or FFEL loan is in default after 270 days without a payment, and Federal Student Aid says the DRG is the servicer for defaulted federal student loans more than 360 days delinquent. It handles payments, rehabilitation agreements, and collections on those loans.

Some FFEL loans are held by a guaranty agency instead. If yours is, the guaranty agency handles the default, not the DRG. Your StudentAid.gov account lists your loan holder under “My Loan Servicers.”

The DRG’s work is moving to the Treasury Department. Under a March 2026 agreement, the Treasury’s Bureau of the Fiscal Service is taking over collection of defaulted student loans. If you get letters or calls about a defaulted loan from Treasury, they’re likely about the same debt. Confirm through StudentAid.gov or the DRG’s number before you pay anyone.

How Do You Contact the Default Resolution Group?

These are the DRG’s contact details from Federal Student Aid:

Federal Student Aid’s Defaulted Loans Support Center lists the options for getting out of default in one place.

Is the Default Resolution Group Legit?

Yes. The DRG is part of the Department of Education, and letters or calls from it about a defaulted federal loan are real. Its website is MyEdDebt.ed.gov, and its phone number is 1-800-621-3115.

Scams do target borrowers in default. Federal Student Aid warns that if a company asks you to pay “enrollment,” “subscription,” or “maintenance” fees to get you out of default, you should walk away. The DRG can help you get out of default for free.

How Does the Default Resolution Group Appear on Your Credit Report?

The Department reports defaulted loans under its own name, and each credit bureau shows that name differently. This is how it appears in member reports SmartDispute sees:

The Experian address is an older Department address. Use the Greenville address above for mail to the DRG.

Why a defaulted loan appears more than once

Before a loan defaults, your servicer, such as Aidvantage, Nelnet, MOHELA, Edfinancial, or Navient, reports it with its late payments. After the loan transfers to the DRG, the Department reports the default as a separate account.

Federal Student Aid confirms that accounts reported by the DRG are in addition to any reporting by your previous servicer, so the same loan may appear on your credit report more than once. That’s expected. What isn’t expected is two accounts both showing a balance for the same loan. Once the loan transfers, the servicer’s account should show a $0 balance and a transfer.

When the default reaches your credit report

Federal Student Aid says the DRG reports a loan as in default if you don’t take action within 65 days of it being placed in default. Before the Department withholds a tax refund, it also sends a notice of intent to offset, which says the offset and negative credit reporting will begin in 65 days.

How long a default can stay on your report

Defaulted federal student loans follow their own reporting rule in the Higher Education Act, not the usual seven years for collections. The law allows a default to be reported for seven years from dates such as when the default claim was paid or the account was first reported, and a new period can start if the loan defaults again.

Is a US Dept of Ed Default a Collection Account?

Not in the usual sense. A collection account normally comes from a debt buyer or a collection agency, with your original lender listed as the original creditor. A DRG account is the Department reporting its own defaulted loan. Our guide to what a collection account is explains the difference.

That difference changes the rules:

• No statute of limitations. Federal law removes any time limit on collecting federal student loans, so a state’s statute of limitations on debt doesn’t apply.
• Collection without a lawsuit. The government can take part of your tax refund and other federal payments, and garnish up to 15% of your disposable pay, without going to court.
• Different debt collection rules. The Fair Debt Collection Practices Act generally doesn’t apply to the Department collecting its own loans. Your rights come mostly from the Department’s own notice, review, and hearing procedures.
• Ways out of default. Unlike most collections, a federal default can be cured through rehabilitation or consolidation.

Your credit reporting rights are the same, though. You can dispute an inaccurate DRG account with the Department and with the credit bureaus.

What DRG Reporting Problems Should You Check For?

Compare the DRG account with your old servicer’s account and across all three credit reports. Look for these problems.

A loan that shouldn’t be in default

Federal Student Aid lists common reasons a loan is put in default by mistake: you were in school at least half-time and should have had an in-school deferment, you were approved for a deferment or forbearance, or you made your payments on time. A loan that was discharged, such as for total and permanent disability or a school closure, also shouldn’t be reported as in default.

Two balances for one loan

After the transfer, only the DRG account should carry a balance. If your old servicer still shows a balance owed on the same loan, one of them is wrong.

A default that wasn’t removed after rehabilitation

After your ninth rehabilitation payment, the Department asks the credit bureaus to remove the record of the default. If it’s still there after you’ve completed rehabilitation and the loan has moved to a new servicer, dispute it. Late payments your old servicer reported before the default can stay.

A default still showing a balance after consolidation or payoff

Consolidation and paying in full don’t remove the record of the default, but the DRG account should show a $0 balance and a paid or closed status afterward.

A balance that doesn’t match

Defaulted loans can include collection costs. Compare the balance on your credit report with the balance on MyEdDebt.ed.gov and your DRG statements.

Differences between bureaus

The balance, status, dates, or account details may differ from one bureau to another. Each difference is something to question.

How Do You Dispute a Default Resolution Group Account?

Use the same approach SmartDispute uses for any account:

1. Pin down the problem. Write down exactly what’s wrong at each bureau, such as a default that shouldn’t exist, a duplicate balance, or a default that should have been removed.
2. Write to the DRG. Mail your dispute to U.S. Department of Education, P.O. Box 5609, Greenville, TX 75403-5609. Explain what’s inaccurate, ask the Department to correct it with every bureau it reports to, and include copies of your evidence. Don’t include your ID.
3. Write to each credit bureau that reports it. Send each bureau the same point, written for that bureau, with copies of your evidence, your photo ID, and proof of address.
4. Mail everything the same day. Keep copies and a record of the date you mailed each letter. Certified mail isn’t required.
5. Send a second round at day 35 if needed. Compare the responses with your updated reports, and build the next round on what actually happened.

Federal Student Aid also lets you dispute a defaulted loan status by calling 1-800-621-3115 or by filing a dispute online with the Federal Student Aid Ombudsman. Our guide to disputing a collection account covers what goes in each letter.

If you got a Treasury offset or wage garnishment notice

These notices come with their own deadlines, and they matter more than your credit report:

• Treasury offset notice: you have 65 days, until the date printed on the notice, to object in writing that you don’t owe the debt, aren’t behind, are in bankruptcy, or are totally and permanently disabled. Federal Student Aid says objections go to U.S. Department of Education, Default Resolution Group, P.O. Box 5227, Greenville, TX 75403-5227, and that the Department won’t start collecting or report the debt as referred for collection until the review is complete.
• Wage garnishment notice: request a hearing in writing, postmarked within 30 days of the date the notice was sent.

Treasury offset and wage garnishment on defaulted student loans are paused for now, but the government has said it plans to resume them. Don’t ignore a notice.

How Do You Get a Federal Student Loan Out of Default?

If the default is accurate, a dispute won’t remove it, but getting out of default can. Federal Student Aid lists three main options:

For credit, rehabilitation is the only option that removes the default itself. Federal Student Aid’s rehabilitation FAQ explains how to start, including the tax documents the DRG needs.

The late payments before a default are a separate problem. If those are wrong, our guide to why a student loan jumps from current to 90 days late covers what to check.

What Documents Should You Gather?

• Your three credit reports, with the DRG account and your old servicer’s account marked on each
• Your loan details from StudentAid.gov and MyEdDebt.ed.gov, including the loan holder and transfer dates
• Any deferment, forbearance, or enrollment records that cover the months before the default
• Proof of payments, or a discharge approval if you received one
• Your rehabilitation agreement and the confirmation that you completed it, if you did
• Any Treasury offset or wage garnishment notice
• For the credit bureau letters only: a copy of your photo ID and proof of your current address

Frequently Asked Questions

What is the Default Resolution Group phone number?

The DRG’s number is 1-800-621-3115. The TTY number is 1-877-825-9923.

What are the Default Resolution Group’s hours?

Federal Student Aid lists Monday, 8 a.m. to 9 p.m. ET; Tuesday and Wednesday, 8 a.m. to 8 p.m. ET; and Thursday and Friday, 8 a.m. to 6 p.m. ET. It’s closed weekends and federal holidays.

What is the Default Resolution Group’s address?

For mail, use U.S. Department of Education, P.O. Box 5609, Greenville, TX 75403-5609. Mail payments to U.S. Department of Education, National Payment Center, P.O. Box 790336, St. Louis, MO 63179-0336.

What does U S DEPT OF ED/GSL/ATL mean on my credit report?

It’s how Experian shows a federal student loan reported by the Department of Education. When it appears as a separate account from your servicer, it usually means the loan is in default and held by the Department.

Is the Default Resolution Group a collection agency?

No. It’s part of the Department of Education and services the Department’s own defaulted loans. It can collect through tax refund offsets and wage garnishment, but it isn’t a private collection agency.

Will rehabilitation remove the default from my credit report?

Yes. After your ninth rehabilitation payment, the Department asks the credit bureaus to remove the record of the default. Late payments reported before the loan defaulted stay on your report.

Can the Department take my tax refund?

It can, through Treasury offset, after sending a notice. Treasury offset and wage garnishment are paused for now, but the government has said it plans to resume them.

What’s the Next Step?

Pull your three credit reports and find every account for the defaulted loan: the US Dept of Ed account and your old servicer’s account. Check that only one carries a balance, that the default should be there at all, and that the details match across bureaus.

SmartDispute lays out every account from all three bureaus side by side and drafts suggested disputes for you to review, change, and mail yourself. See how SmartDispute works.