If you fail to make a loan payment for 6 months, you go into DEFAULT

You should work with your lender if you having problems repaying your loan to avoid defaulting.  Never ignore any delinquency notices you receive from your lender.  The consequences of failing to make payments are serious!

• The entire unpaid balance and accrued interest becomes due and payable immediately.

• You lose deferment options.

• You become ineligible for further aid.

• Your account may be assigned to a collection agency.

• The default may be reported to credit agencies.

• Your income tax refunds may be withheld.

• Your employer (at the request of the Federal government) can garnish part of your wages.

• The Federal government can take legal action against you.

• You may incur legal expenses.