Student Loan Default Collection Act of 1989

Student Loan Default Collection Act of 1989 - Amends the Higher Education Act of 1965 to establish a student loan default reduction program.

Establishes such program as an amnesty program for student loan defaulters on guaranteed loans under the Robert T. Stafford Student Loan Program. Allows borrowers with defaulted loans to fully repay the debt: (1) without penalties; (2) with any information on the defaulted loans removed from credit bureaus; and (3) with their student aid eligibility restored. Directs the Secretary of Education (the Secretary) to sell to an eligible lender the loans of students: (1) who are in default because of a clerical error; or (2) who have made 12 consecutive payments on a defaulted loan (with the student aid eligibility of such students to be restored). Directs the Secretary to widely publicize the availability of such amnesty program.