Well, a third option for getting out of default is to repay the full amount of your defaulted student loan.
Another question about my federal student loan. Is there a place where I can know more companies that wants to charge me fees to get my loan out of default?
You should read our blog post called "Don't Be Fooled; You Never Have to Pay for Student Loan Help"
Are there other collection costs applicable apart from the cost of placing my loan with a collections agency?