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LOAN DELINQUENCY AND DEFAULT

What they are and what the difference is between being delinquent or in default on your student loans?


IMPORTANT INFORMATION

Defaulting on your student loans can have many negative consequences. Learn more about the differences and how to avoid them.

If you are unable to meet the repayment schedule on your campus based student loan(s), contact your servicer  Heartland ECSI .

In order to be eligible for various hardship options , your account must be in good standing.

If you have a past due debt, you may receive a Tax Offset letter and have some or all of your tax refund garnished by the U.S. government.


DELINQUENCY

Your loan becomes delinquent the first day and before 9 months of no payments. Even if you miss one monthly or quarterly payment and then start making payments again, your campus based loan account will remain delinquent until you repay the past due amount or make other arrangements, such as deferment or forbearance. The consequence for being in a delinquency status will affect your account to prepare the assignment to a Collections Agency.


DEFAULT

Your account is defaulted when no payments are made starting 270 days or 9 months past the due date. For a loan made under the Federal Perkins Loan Program, the holder of the loan may declare the loan to be in a default if you do not make any scheduled payment by the due date. The consequences for being in a defaulted status will affect the following: 

  • Entire unpaid balance, past interest, and late fees are due (accelerated)
  • Lose eligibility for Deferment/Forbearance or repayment plans
  • Account assigned to Collections Agency
  • Credit Score is negatively affected
  • State tax refund withheld (Federal tax refund for Perkins & Direct Loans)
  • Wage garnishment (Perkins & Direct Loans)

 


COLLECTIONS

Please refer to the following Collections Agencies Contact Information:

Also refer to the SFS page on Collections for more information or speak with a Collections specialist in our office

Borrower information to pay: www.HelpUPay.com

Mailing address: 2000 York Road, Suite 114

Oakbrook, IL 60523

Mailing Address: Coast Professional, Inc. Campus

P.O. Box 2876

West Monroe, LA 71294

Mailing address: 300 Chatham Ave.

Rock Hill, SC 29731

QUESTIONS?

Feel free to e-mail us by clicking below or, give us a call at 858-822-4727 if you have additional questions.

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