Student Loan Repayment

Default occurs when you fail to meet the terms of the promissory note. The lender, holder, guaranty agency or government may:

• declare the entire unpaid balance, including interest, immediately due and payable
• assign the promissory note to a guaranty agency, at which time all amounts due will be payable to the guaranty agency
• report the default to one or all three national credit reporting agencies
• take legal action against you
• report default to your school

Other consequences include:

• requirement to pay all charges and costs (including reasonable attorney's fees) permitted by law for the collection of your loan
• wages garnishment
• witholding of state and federal income tax refunds
• ineligibility to receive assistance from federal student aid programs
• ineligibility for various repayment options, deferments, and other benefits

If you're late making a loan payment, your delinquency might be reported to the national credit bureaus.

These instances will remain on your credit report for a minimum of seven years. This may make it difficult for you to borrow money for a car or a home in the future.

• Make payments on time
• Do NOT ignore mail from your holder/servicer
• Report changes immediately - name, address, phone number and enrollment status
• Request deferments, forbearance, or other repayment options as needed
• Contact the holder/servicer immediately if you have difficulty making loan payments