What To Do When You Default

If you default, it means you failed to make payments on your student loan according to the terms of your promissory note. In other words, you failed to make your loan payments as scheduled. Your school, the financial institution, your loan guarantor, and the federal government all can take action to recover the money you owe. National credit bureaus can be notified which will harm your credit rating, you will be ineligible for addition federal student aid, loan payments can be deducted from your paycheck, your income tax refunds can be withheld, you will have to pay late fees, and you can be sued. To learn more check out the FAQ page at http://www.ed.gov/offices/OSFAP/DCS/faqs.html. Contact the Federal Student Aid hotline for more information at 800-621-3115.
Application: http://www.ed.gov/offices/OSFAP/DCS/default.html
State: All
Age: All
Incomes Up To (Approx): $1,000,000
Subject Category: Education/Training
Money Type: Loan
Contact: Defaulted Loans Hotline, 800-621-3115; http://www.ed.gov/offices/OSFAP/DCS/default.html