Delta Management: How it Got Your Student Loans

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Stanley Tate

#1 Student Loan Lawyer

Updated on October 6, 2022

The U.S. Department of Education is usually your lender when you borrow federal student loans. But it doesn’t handle your payments, answer questions about your federal 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 Delta Management Associates, Inc.

If Delta Management 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 free consultation with me.

What is Delta Management?

Delta Management Associates, Inc. is a private debt collector hired by the Education Department, ECMC, Ascendium, and others to handle federal loans in default. The company is a legitimate debt collection agency for government and higher education debt and financial services. Although it’s not BBB accredited, Delta Management isn’t a scam company.

What can Delta Management help you with?

If Delta Management is assigned your defaulted student loans, you can contact the company about the following repayment options:

  • Settlement is the only option to save collection fees and reduce some of the accrued interest. Many federal student loan settlements save the borrower about 10-15% of the current loan balance.

  • Loan Consolidation allows you to get out of default fast. You do not need good credit to qualify. Your credit score won’t be checked in the application process. Instead, you’re eligible to get a Direct Consolidation Loan if you’re not under an active administrative wage garnishment and have at least two loans to include in the application.

  • Loan Rehabilitation gets you out of default, qualifies you for new financial aid, and allows you to clear CAIVRS after making 9 payments in 10 months. This program also stops wage garnishment after you make your fifth payment. Your payment amount is based on your income and expense information.

  • Voluntary Repayment Agreement does not get you out of default. Choose this option only if you’re not eligible for consolidation or rehabilitation.

Can Delta Management take my tax refund? Delta Management can take your tax refund from the IRS if your federal student loans are in default. You can request a tax refund offset reversal for extreme financial hardship by contacting the Default Resolution Group at 800-621-3115.

What Delta Management can't help you with

Until you get your loans back into good standing, you’re ineligible for:

  • income-driven repayment plans

  • deferment and forbearance

  • new financial aid

  • student loan forgiveness programs

  • FHA mortgage

  • Perkins Loan Cancellation

How to stop a student loan wage garnishment from Delta Management?

Federal law allows Delta Management to garnish wages without a court order to collect defaulted federal student loans.

  1. Gather documents. Before you call, get a copy of your two most recent pay stubs and most recent federal tax return. You’ll likely need that financial information if you establish a payment agreement.

  2. Speak with a representative. Ask for your account number, how many loans you have in default, and your total balance.

  3. Learn your options. Ask the representative what your options are to stop the wage garnishment. Before it starts, you may be able to negotiate a settlement, apply for loan consolidation, or enter into the loan rehabilitation program. After the garnishment starts, your options are limited to settlement and loan rehabilitation.

  4. Submit required documentation, if you chose loan consolidation, submit the consolidation paperwork to your loan servicer. If you chose the loan rehabilitation program, you’d need to submit and do three things: (a) the Loan Rehabilitation Income and Expense Form and proof of income; (b) schedule 9 monthly payments; and (c) sign and return the Loan Rehabilitation Agreement Letter.

  5. Confirm receipt. After you submit documents and make any necessary payments, call Professional Bureau. Ask the representative if the company’s received the documents, your payment, and if you’ve completed all the required steps.

Which is better for my credit report: consolidation or rehabilitation? If the student loans aren’t on your credit report, both consolidation and rehabilitation will likely have the same effect on your report and credit score. The loans will be added back, but none of the past negative information should return. If the loans are on your report, rehabilitation will remove the default status and keep the blemishes. Consolidation will give you a new Direct Consolidation Loan and mark the old loans as “paid in full through consolidation.”

Can I get Delta Management l removed from my credit report? Federal law prohibits inaccurate reporting. So if the information from Delta Management is wrong in any way, you can try to have it corrected or removed from your credit report. Speak with a professional that handles Fair Credit Reporting Act (FCRA) issues for help.

Contact information for Delta Management

You can contact Delta Management in the following ways:

  • Phone: Delta Management customer representatives can take payments using a debit card. You can set up the payments by calling the company at its phone number, 800-688-6337

  • Mail: Delta Management Associates, Inc., P.O. Box 9191, Chelsea, MA 02150-9191.

  • Online:

How to complain about Delta Management

If you’re having difficulty with Delta Management that you’ve been unable to resolve, start by filing a complaint with the Federal Student Aid Feedback Center.

You can also file a complaint with the Department of Education’s highest customer service office, the FSA Ombudsman. Call 877-557-2575.

If your issue goes unresolved, you can also make complaints about Delta Management to:

Lastly, because Delta Management is a debt collector and not your original creditor, the company must adhere to the Fair Debt Collection Practices Act and other consumer rights laws (e.g., no harassing phone calls. threatening to garnish wages without authority, etc.). Contact an FDCPA law firm near you to learn if you can take legal action.

Need help with Delta Management? Let's talk

If you want to go over your options, schedule a phone call with me. I’ve got years of experience helping people like you with their student loans.

Let’s talk. I can help you find a way to get out of default while saving the most money and preserving your eligibility for loan forgiveness.

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