Default Information

You should work with your lender if you experience 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! If you fail to make a loan payment for an extended period (270 days), you go into DEFAULT.

As a result of defaulting on your loans —

• You lose deferment options.

• Your entire unpaid balance and accrued interest will be payable immediately.

• You will be ineligible for further aid.

• Your account may be assigned to a collection agency.

• Your default status 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.