Missed Loan Payments

[Guest Jenifer]

We have a client that has two participants with outstanding loans. During mid year 2000 the client switched payroll providers and the new provider did not get the loans set up for payroll deduct, so no payments have been withheld or made since July. Since this is not the fault of the participants themselves, but an error on the part of the employer, we would like to get the payments caught up and avoid having to default the loans. What are my options with doing this, and what are the risks involved if we do not default the loans?