Consequences of Default

If you are at least 270 days late on your student loan payment, your loan is considered to be in default and your loan holder will assume that you do not intend to repay your loan.

If you default on your student loan, you face serious penalties including any or all of the following:

• Damage to your credit rating.
• Garnishment of your wages.
• Withholding of your state or federal Treasury payments (including federal tax refunds, Social Security benefits, etc.).
• Loss of professional licenses.
• Civil lawsuit.
• Liable for court costs/legal expenses.
• Loss of deferment entitlements and flexible repayment options.
• Loss of eligibility for further financial aid.
• Referral of your account to a collection agency.
• Liability for collection costs.
• Requirement to pay in full.
• Denial of employment by government agency.
• Hold placed on your official transcript.

REMEMBER! Your default does not affect just you. It will have an adverse effect on the FFELP and could jeopardize the educational opportunities available to future students.