(MONEY Magazine) – Here's what to do if you want to apply for a federally insured student loan, or if you already have such a loan and are either seriously behind in your payments or have defaulted: -- If you want a loan, information about the program is available from the Department of Education, the college or university you'll be attending and your local bank. Always ask your lender if it sells student loans to secondary holders such as Sallie Mae (Student Loan Marketing Association). Borrowing from a lender that will not sell your loan is better for you because you're then assured of direct communication with the loan holder if there's an disagreement, mix-up or problem with delinquency. -- If you're being threatened with default through collection notices or phone calls, ask your loan holder or servicer for debt-relief counseling. You can sometimes get deferments for as long as two years. Also, if you hold more than one loan, you might want to get in touch with Nellie Mae (New England Education Loan Marketing Corporation; 800-338-5626), a private, nonprofit firm based in Braintree, Mass. Like Sallie Mae, this company buys loans from the original lender and services them. It also originates loans and can consolidate your outstanding loans with one lower monthly payment. Of course, that means it will take longer to pay off your debt. -- If you know you are in default, call the Department of Education (800-433-3243). Ask the counselor to refer you to the Credit Management and Debt Collection Services office handling your loan. Or write to the Department of Education, Office of Postsecondary Education, 400 Maryland Ave. S.W., Washington, D.C. 20202. Be sure to include your name and account number. Counselors can provide you with copies of your loan agreements and payment records and help you set up a payment schedule. They will also ease your dealings with collection agencies and help clear your credit record. -- To voice a complaint about your lender, call the United States Student Association (202-347-8772), a lobbying group that represents 3.5 million enrolled students. While the organization isn't staffed to intervene in individual cases, your information may help in its lobbying efforts to reform the financial aid system. -- K.H.