The first thing that you should do is to contact the current lender of the loans. Sometimes a loan has been sold to another lender, therefore it is important to go through all correspondence to find out who currently owns the loans.
Set up a payment plan with your lender. Typically the payments will be for at least the amount of interest accruing on the loans each month. Do not be surprised if the amount of the loans has gone up, since collection fees usually will have been added to the original amount. Sometimes collection fees will equal several thousands of dollars.
Student loan rehabilitation is the process in which you are required to make nine on-time payments. After completion of the payments, your loan can be sold to another lender, and the default will be removed from your credit report. If any of the payments are late, you will be required to begin a new nine-month period. Typically, rehabilitation monthly payments must be more than just payments on interest.