During the pandemic, the Department of Education announced that all federal loan delinquencies for the loans it controls would be managed by the Default Resolution Group (DRG) instead of by various collection agencies. Read my article on DRG for up-to-date details on how to contact DRG and what to do if your federal loan is moved to collections. The information in this article may no longer be accurate.
When you borrow federal student loans, the U.S. Department of Education is usually your lender. But it doesn’t handle your payments, answer questions about your student loan debt, or change your repayment plan, if necessary. Instead, that’s the job of your loan servicer.
When you miss more than 270 days of payments, your loans default. And when that happens, your servicer starts the process of moving your account to a collection agency like Credit Adjustments, Inc.
If Credit Adjustments is contacting you about defaulted student loans, then you’re at risk of an administrative wage garnishment, tax refund offset, and Social Security Benefit Offset. Here’s what to know about this debt collection agency.
Disclaimer: Although I am a student loan lawyer, this article contains general information and should not be taken as legal advice. If you want legal advice that pertains to your specific situation, you should schedule a call with me.