Coronavirus Response Update
School facilities at 250 Joralemon St. and 111 Livingston St. are closed until further notice. Read more.

About Federal Loan Default

If you do not take responsibility and repay your loans on time, they will become delinquent and possibly default. This has serious consequences and will damage your credit rating. Defaulted loans are reported to national credit agencies, which will negatively affect your credit rating and ability to purchase a car or home in the future. In addition, the following can occur:

  • You may lose future eligibility for financial aid and/or educational loans.
  • The references you supplied on your loan application may be contacted.
  • Additional fees and interest may be charged to you.
  • You may lose deferment and forbearance options.
  • Your federal and state tax refunds may be withheld and applied to your loan balance.
  • Your professional license renewal may be denied.
  • Your employer may withhold part of your salary for payment of your loan.
  • Legal action may be taken against you.

If you are having trouble making your scheduled loan payments, do not hesitate to ask for help. Contact your lender. Do not wait until default occurs.