<Education Loan Information :: Graduation Education Loans, Parent PLUS Loan, Alternative Education Loans, Private Student Loan

Avoiding Student loan Default


The consequences of student loan default are serious and wide-ranging - here's what you must know:


• Defaulted loans are informed to national credit bureaus and can remain on your credit report for seven years.
• A defaulted loan may be assigned to a collection agency. They often cost collection fees as well as attorney charges, all of which become part of your debit.
• A defaulted loan is listed as adverse credit on your credit statement, which can mean not being able to get a credit card, car loan, additional financial aid and deferments or loan consolidation.
• A defaulted loan can cause you to lose income tax reimbursement, and refund amounts will be applied to student loan debit.
• Holds may be placed on your college reports. .
• A defaulted loan may put at risk your employment or cause termination, if you are hitherto employed.
• If you require a license to practice in your profession, it may be withdrawn, either cancelled or not renewed.


Always keep in mind; you have made a commitment to yourself and your future. To avoid defaulting on a student loan, keep up copies of your student loan records and keep your mailing address and email address current with your lender and servicer. It is vital to contact your lender if you are having difficulty with repayment before your account becomes delinquent. If you execute this, you have a good opportunity of being able to steer clear of default!