Frequently Asked Questions

General Questions | Questions from Borrowers | Questions from Third Parties

General Questions

Who is GC Services?

GC Services is a debt collection company that provides accounts receivable management for a number of public and private sector organizations.  The U.S. Department of Education and a number of Guaranty Agencies contract with GC Services in order to administer the collection of defaulted federal student loans.  For additional information, please refer to our About Us page. 

How do I get into contact with GC Services about my loan?

If you received a letter or phone call from GC services, the easiest way to contact us is to call the phone number referenced in the letter.  You can also visit the Contact Us page of this site for additional contact information.

What does the Department of Education have to do with my Student Loans?

The U.S. Department of Education is the primary federal agency over federal student loans and carries out the following functions:

  • Establishes policies on federal financial aid for education,
  • Distributes as well as monitors those funds, and
  • Acts as the lender or guarantor on certain federal student loans.

What is a Guaranty Agency?

A Guaranty Agency guarantees repayment of student loans made under the former FFELP Program. In the event of a default, the Guaranty Agency steps in and pays the lender.  At this point the Guaranty Agency becomes the loan holder.  The Guaranty Agency will then attempt to collect on the account in order to recoup its costs.  The Guaranty agency may engage the services of Private Collection Agencies, like GC Services, to assist with the collection of defaulted student loans.  

What is a loan holder?

The entity that holds the loan promissory note and has the right to receive payment from the borrower.  For defaulted student loans this can be the Department of Education or a Guaranty Agency.  

Questions from Borrowers

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Why are you calling me about my loans?

If you have received a call or letter from GC Services, this means that the Department of Education or Guaranty Agency holding your loan has contracted with us to collect on the outstanding balance of your defaulted student loans.      

How did you get my information?

The Department of Education or Guaranty Agency holding your loan would have provided us with your contact information when they assigned your account to us for resolution.  If we discover that the contact information provided to us in no longer good, we will go through a process to obtain your current location information.  This process is known as skiptracing and is authorized by Federal law.      

Why do you keep calling my friends and relatives?

If we have been contacting your friends or relatives that means that we have been unable to reach you.  When you signed your promissory note or agreed to certain repayment program, you likely provided the names, addresses, and phone numbers of references who could be contacted in the event your loan holder is unable to find you.  

Who is my lender and where are my loans?

You can get a complete listing of your loans from the National Student Loan Data System. The National Student Loan Data System is the U.S. Department of Education’s central database for student aid.  

Can I rehabilitate my loans again?

Unfortunately, a loan may only be rehabilitated once.  This means if you have previously successfully rehabilitated your student loans on or before August 14, 2008, you will not be able to rehabilitate your student loans again. If you previously enrolled in one of our loan rehabilitation programs but were unable to successfully complete the program, contact us. You may be eligible to re-enroll in one of our loan rehabilitation programs.     

I received a Notice Prior to Wage Withholding. What should I do?  

If your student loan debt is subject to Administrative Wage Garnishment, you will receive a Notice Prior to Wage Withholding at least 30 days prior to the initiation of garnishment proceedings. This Notice will contain a statement that our client intends to collect the student loan debt through deductions by your employer from your disposable pay and an explanation of your rights.

You have 30 days from the date of the Notice Prior to Wage Withholding to make a written request for a hearing on the potential wage garnishment or to make other payment arrangements. Contact us.  We may be able to help.    

Why were wages withheld from my paycheck?

If you have not agreed to bring your loan current through a voluntary payment arrangement, federal law allows the Department of Education or Guaranty Agency holding your loan to utilize involuntary payment options.  This includes Administrative Wage Garnishment. See the Administrative Wage Garnishment section of this website for more information on the process and what you can to do get out of Administrative Wage Garnishment. You can also contact us. We are here to help.  

Does GC Services report my student loans to the consumer reporting agencies?

GC Services does not report to consumer reporting agencies. The loan holder generally reports when a federal student loan goes into default and controls all subsequent reporting.  Once you successfully complete the loan rehabilitation program, the loan holder will request that the record of default be removed from your credit report.      

Why was my federal tax refund seized?

If you have not agreed to bring your loan current through a voluntary payment arrangement, federal law allows the Department of Education or Guaranty Agency holding your loan to utilize involuntary payment options.  This includes the Treasury Offset Program which allows the Treasury Department to withhold the federal tax refund you might have otherwise been entitled to receive in order to apply it to your defaulted federal student loan balance.    

Do I have to pay my student loans even though I have declared bankruptcy?

Federal student loans may be discharged through bankruptcy in certain limited circumstances.  You should speak to your legal advisor regarding your student loan debt.  

How long am I liable for a defaulted student loan?

Unlike most types of debt, federal law gives special treatment to federal student loans.  In this context, federal law exempts federal student loans from state statutes of limitations.  If you have questions about the statute of limitations, we encourage you to consult with your legal advisor.     

What should I do if I am disabled and unable to pay my student loan debt?

A federal student loan debt may be permanently discharged if you suffer from a total and permanent disability.  To qualify for this discharge, you must either (A) be unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that: (i) can be expected to result in death, (ii) has lasted for a continuous period of not less than 60 months, or (iii) can be expected to last for a continuous period of not less than 60 months; or (B) have been determined by the Secretary of Veterans Affairs to be unemployable due to a service-connected disability.

If the U.S. Department of Education determines you are Totally and Permanently Disabled, your loan will be discharged.  If you believe you are Totally and Permanently Disabled you may apply for a Total and Permanent Discharge (“TPD”) by submitting an application to Nelnet – the servicer the Department of Education uses to administer all TPD applications.  Importantly, GC Services does not make a determination as to whether you are Totally and Permanently Disabled or qualify for a TPD.     

You can also visit http://disabilitydischarge.com  or call 888.303.7818 for more information.  

Will I qualify for new student loans once I get my student loans out of default?

You should speak to one of our account representatives regarding your specific circumstances and potential eligibility for future Title IV benefits under the Higher Education Act. You may be able to have your eligibility for Title IV benefits restored by curing the default on your student loan debt.  This can be accomplished by paying the entire balance of your defaulted student loans or reaching a settlement agreement with your lender.  You can also complete the Loan Rehabilitation Program or Loan Consolidation Program.    

Can I resolve my account by email?

Not at this time.  You can submit information and inquiries to us via email but we must speak to you in order to resolve your account.  

I lost my paperwork, what do I do?

Give us a call and we will be happy to provide you with new copies.  Certain forms are available for download here.  

Why doesn’t the information on my paperwork match the information I provided over the phone?

We are required to ensure the reasonable and affordable payment amount for the Loan Rehabilitation Program is based on the information in the supporting documentation you provided to us.  Your financial documentation may have resulted in a slightly different payment amount than what you discussed originally on the phone with our account representative.  If you believe the information on you paperwork is incorrect or if you have questions about your payment amount, please give us a call.  

Do I receive any benefits for being a member of the Armed Services?

The Servicemembers Civil Relief Act (SCRA) is a federal law that provides certain protections to active duty servicemembers. The law’s purpose is to postpone or suspend certain civil obligations so that members of the Armed Forces can focus their full attention on their military responsibilities without adverse consequences for them or their families. You may be entitled to certain benefits if you are an active duty service member, a dependent of an active duty service member or in certain circumstances.  Please contact us so that we can discuss any potential benefits you may have available to you.    

What do I do if I made payment arrangements but my circumstances have changes and I can no longer afford the payments?

If you are currently making payments but can no longer afford the payment amount due to a change in circumstances, please give us a call. We can work with you to adjust the payment amount or payment due date so that you can continue working towards getting your loans out of default.  Please note that changing your payment arrangement may require you to start the program over again.      

What payment methods do you accept?

GC Services accepts several different payment methods to meet your needs. We accept Checks, Check by Phone, Post-dated Checks, Cashier Checks, Money Orders, Western Union Quick Collect, and Credit / Debit Cards with the Visa or Mastercard logo.    How do I make a payment? You can make a payment by calling us, mailing in your payment or you can pay online.    

Questions from third parties 

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Why is GC Services calling me about someone else’s debt?

If you have received a call from GC Services about someone else’s debt, it was most likely because we were looking for assistance in locating the borrower. When we are unable to reach a borrower, we will attempt to reach references provided to us by the borrower. If we do not have references for a borrower or the references do not know how we can reach the borrower, we may utilize a practice commonly called skiptracing.  It is possible that your contact information came up in our search as being associated with the borrower.  If you believe we have reached your number in error, please give us a call or submit a request via the contact us link on this site and we can remove your number from the associated account  

I am not the person you are trying to reach, how do I get GC Services to stop calling me?

If you have received calls from GC Services for someone else and you would like the calls to stop, you can call us back at the number provided by the caller or you can submit a request through the contact us  link on this website. We can remove your number from the associated account.