Default Prevention

Borrower Responsibilities

• Repay your loan regardless of employment or completion status
• Notify your lender before your due date if you’re unable to pay
• Make minimum monthly payments on time
• Notify your lender within 10 days of an address, name, or employment change
• Notify your lender within 10 days of a transfer or enrollment change

Consequences of Default (270+ Days Past Due)

• Immediate full balance due
• Credit bureau reporting
• Federal tax refund seizure and wage garnishment
• Ineligibility for future financial aid
• Collection agency referral or civil suit, with borrower responsible for collection costs and attorney fees
• Possible bar on state professional license renewal

Borrower Options

• Deferment (economic hardship, in-school, unemployment, or disability)
• Forbearance (mandatory or economic hardship)
• Consolidation
• Alternative payment plans (income-sensitive, graduated, or lowered payment)