Read and save copies of all student loan records, letters, and payments. Keep your address current with your lender. We realize that you may be moving to a new address but keeping your lender aware of your address is important!
Contact your lender or holder with any questions or problems, to apply for deferment or forbearance, or if you are having any repayment difficulties.
- NEVER ignore correspondence or requests for payment.
Most students enter repayment within six months after graduation or last attendance. Your lender will usually contact you to arrange a repayment plan. If you do not receive a repayment schedule, take the initiative and contact your lender. Use the Student Loan Calculator to calculate your monthly payments and compare them to your expected starting salary.
Default is serious business! You are legally required to repay your educational loans. Even if you drop below half-time status, don't finish college, can't find a job right away, or are dissatisfied with the education you received, your education loan must be repaid when your grace period expires. If you don't fulfill your end of the agreement, there are severe consequences. For instance, the entire unpaid amount of the loan, including interest, may be immediately due. Here are some other problems you may face if you default on a student loan:
- Loss of federal and state income tax refunds
- Legal action and assessment of collection charges including attorney fees
- Loss of eligibility for other student aid and assistance under most federal benefit programs
- Loss of eligibility for deferments
- Loss of your professional license
- Negative credit reports
- Garnishment of wages