Education Department Publishes List of 574 Defaulted HEAL Loan Borrowers
Health professionals face professional risks as the government resumes federal student loan collection efforts.
1Public Disclosure of Debt
The Department of Education released a list of 574 health professionals in default on Health Education Assistance Loans on October 29, 2026. This marks the first publication of such names since October 2021. The list includes each borrower's professional field, last known location, and total outstanding balance, totaling $92.7 million in debt.
2Demographics of Default
Chiropractors represent the largest portion of the list, accounting for 308 of the 574 names and $40.6 million in debt. Podiatrists hold the highest average balance at approximately $249,000 per person. California leads the states with 229 listed borrowers, followed by Texas, New York, and Florida, reflecting a broad geographic distribution of defaults.
3Professional and Legal Risks
Being on the HEAL list carries consequences beyond standard credit damage. Under the Public Health Service Act, the government shares this information with state licensing boards and hospitals. Providers may face professional license suspension or revocation, and the HHS Office of Inspector General can exclude them from billing Medicare and Medicaid programs.
4Historical Loan Context
HEAL loans were federally insured programs for graduate students in health fields, active between 1978 and 1998. The Department of Education assumed responsibility for servicing and collections in 2014. These loans operate under specific statutory rules distinct from the broader Direct Loan program, necessitating unique collection tools like this public registry.
5Rising Average Balances
While the total number of borrowers on the list decreased from 671 in 2021 to 574 in 2026, the average balance rose by 10% to $161,500. Three individuals currently owe more than $1 million, with the highest balance reaching $1.79 million. Interest continues to accrue on these defaulted balances until they are fully resolved.
6Broader Collection Strategy
The publication coincides with the Treasury Department’s efforts to restart involuntary collections for federal student loans. Following a transition of defaulted loan collections to the Treasury in March, the government is preparing to resume wage garnishment and tax refund seizures. This move signals a return to active enforcement after the pandemic-era pause.
7Operational Shifts at Treasury
The government launched the Defaulted Loans Support Center on September 30 to manage these portfolios. Reports suggest the Treasury may begin contracting with private collection agencies as early as November. Officials have noted significant increases in rehabilitation and consolidation approvals during the initial months of the partnership between the Education and Treasury departments.
8Next Steps for Borrowers
Borrowers identified on the list are urged to contact Transworld Systems or the Education Department’s HEAL team immediately. Those in default on other federal loans should utilize the current window to pursue rehabilitation or consolidation before wage garnishment and tax refund offsets officially resume, potentially during the 2027 tax filing season.