|
|
|
|
- Collection calls
- Collection letters giving you options for repayment
- Monthly delinquency reporting to credit bureaus
DEFAULT occurs when you fail to make payments when due or meet other terms of
your promissory note. Your loan becomes due and payable in full immediately. There are serious consequences when you default on your student loan:
- Wage garnishment
- Interception of state tax refund and/or any type of federal payments such as income tax refund,
social security and disability benefits
- up to 25% loan balance increase with added collection costs
- Default status is reported to all national credit bureaus and will negatively affect your credit rating
- Loan turned over to independent collection agency
- Ineligible for further financial aid
- Suspension of professional license
- Lien against property, vehicles, saving and checking accounts, and other
judgement actions
These consequences are severe and long lasting! How can I avoid default?
- Immediately contact your lender/servicer if you cannot make payments
- Be sure your lender has your current address and phone number(s)
- DO NOT ignore your collection letters from your lender and guarantor as they
provide options to assist you
|
 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
