2022 Update: In 2021, 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 take out federal student loans, the U.S. Department of Education is your lender. The Department pairs you with another company — a loan servicer — that handles your payments, answers questions about your student loan debt, and changes your repayment plan, if necessary. When you miss more than 270 days of payments, your loans default. And when that happens, your account is moved to a collection agency like Reliant Capital Solutions, LLC (RCS).
If your defaulted student loans have been placed with Reliant Capital, here's what you need to know about the debt collection agency.
What is Reliant Capital Solutions
Reliant Capital Solutions is a collection agency hired by the Department of Education to handle federal loans in default. In the past, RCS has used ConServe Debt Collection Agency as a subcontractor. In 2016, the company was awarded a $196.6 million contract to collect defaulted debts. The contract is set to expire on September 30, 2024.
Is Reliant Capital Solutions Legit? Reliant Capital is a legitimate debt collection agency and accounts receivable management company focusing on higher education, government services, healthcare, and financial services entities. In addition, RCS has been BBB accredited since 2019 with an A+ BBB rating. In short, RCS is not a scam.
Does Reliant Capital Solutions report to credit bureaus? Reliant Capital reports late payment information to the major credit reporting bureaus. However, if they are the debt collector for your federal student loans, you may not see RCS on your credit report. Instead, you may see Debt Management and Collections System or Default Resolution Group.
What Can Reliant Capital Help You With?
If Reliant Capital Solutions 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 you 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.
- Voluntary Repayment: does not get you out of default. Choose this option only if you're not eligible for consolidation or rehabilitation.
What Reliant 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
How to Make Student Loan Payments With RCS
You can make payments in the following ways:
- Phone: Reliant customer representatives can take payments using a debit card. You can set up the payments by calling the company at its phone number, 866-837-5096.
- Mail: You can mail payments for Department of Education Loans to National Payment Center, P.O. Box 790336, St Louis MO 63179-0336.
- Online: For Department of Education held loans, you can make payments at myeddebt.ed.gov.
To start making payments online, follow these three simple steps:
- Create an account on MyEdDebt. Click on "Borrower/Student" and "Create Account" to sign up for an account. The site will prompt you to enter your Social Security Number, Date of Birth, email, etc.
- Add a U.S.-based debit card. Once your account has been activated, you can make a one-time payment. The system doesn't accept credit cards or cards from foreign banks.
About Reliant Capital Solutions, LLC
Reliant was founded in 2007 and is incorporated in Columbus, Ohio. The company also has offices in New York. It is owned by its current President/CEO, Margie Brickner.
Contact Information for Reliant Capital Solutions
You can contact Reliant Capital's customer service department by phone by calling 866-837-5096. The call center is open Monday through Thursday from 8 am to 7 pm EST and Friday from 8 am to 5 pm EST.
You can mail general correspondence to: Reliant Capital Solutions, 670 Cross Pointe Rd, Gahanna, OH 43230.
How to Complain About RCS
If you're having difficulty with Reliant Capital Solutions that you've been unable to resolve, start by filing a complaint directly with the Default Resolution Group. It oversees the collection process. Call 800-621-3115.
Another option is to file 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 RCS to:
- the Consumer Financial Protection Bureau
- the Better Business Bureau (BBB)
- your congressional representative
- your state attorney general's office
Lastly, because RCS is a debt collector, the company must adhere to the Fair Debt Collection Practices Act and other consumer rights laws (e.g., no harassing phone calls. threaten to garnish wages without authority, etc.). Contact an FDCPA law firm near you to learn if you can take legal action.
Need help with Reliant Capital Solutions? Let's talk
If you want to go over your options, schedule a free 10-minute 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.