Default Prevention Department

The Default Prevention Department at Southwestern Christian College wants to help you bring your account current. It is our GOAL to help you keep your student loan(s) out of default. We are here to serve both our current and former students. If you are having problems, please contact
Mrs. Dean Royal at:

Borrower Responsibilities

• I am responsible for repaying my loans even if I am unable to secure employment after I complete my education or leave school.
• I am responsible for repaying my loans even if I do not complete my planned education.
• I am responsible to immediately notify my lender before the due date if I cannot make a payment.
• I am responsible for repaying my loans with accrued interest and any fees.
• I am responsible for repaying my loans in accordance with the terms and conditions of the Application/Promissory Note, unless my loans are consolidated or terms are changed.
• I am responsible to make a minimum monthly payment in accordance with the terms and conditions of the Application/Promissory Note.
• I am responsible to notify my lender within 10 days if I change my name, address, social security number, telephone number, graduation date or employer.
• I am responsible to notify my lender within 10 days if I transfer to another school, enroll on a less than half time basis or leave school for any reason.
• I am responsible to repay my loan, because if I do not, I may be considered in default. If I am in default:
  • The unpaid balance of my loan, including interest, becomes due immediately.
  • My loan will be assigned to the guarantor and they will report the default to national credit bureaus.
  • The guarantor my institute proceedings to collect my income tax refunds.
  • My loan may be assigned by the guarantor to the federal government for litigation.
  • My wages may be garnished.
  • I will be ineligible for any further federal or state financial aid.
  • My account may be forwarded to a collection agency, a civil suit may be brought against me to force repayment, and I may be held responsible for the expenses incurred in the attempt to collect, which includes attorney’s fees.
     
• I am responsible for attending an exit interview before I leave school.

Borrower Options

Deferment
You may postpone your payments if you qualify for an Economic Hardship, In-school, Unemployment, or Disability deferment. Qualification is determined by current economic, enrollment, employment, or disability status. You are entitled to any of these deferments if you qualify.
Forbearance
You may qualify for a Mandatory or Economic Hardship Forbearance. Please contact your lender/servicer for more information on forbearance.

Consolidation
You may be eligible to consolidate your loans. Loan consolidation often reduces your monthly student loan payment.

Alternative Payment Plans
You may qualify for Income Sensitive, Graduated, or Lowered Payment plans.

If you do not resolve this delinquency before your account reaches 270 days past due, your loan(s) will be declared in default. If a default claim is paid, the entire balance of your loan(s) will become due and you will no longer be eligible for any Title IV financial aid or for any of the options described above.

Other default consequences are:

• Reporting the default to all national credit bureaus.
• Withholding of a percentage of your wages until repaid in full.
• Adding collection and attorney fees to the balance of your loan.
• A bar on the renewal of your State of Texas Practitioner’s license.
• Seizure of your IRS tax refund by the U.S. Department of Education.