LOAN DELINQUENCY AND DEFAULT

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 principal balance, past interest, late fees, and collection agency fees (if applicable) are all due. (accelerated)
• Lose eligibility for Entitlements (Deferment, Forbearance, or Repayment Plans)
• Loan account is assigned to a Collections Agency
• Credit Score is negatively affected
• State Tax Refund intercepted/withheld (Federal Tax Refund for Perkins Loans & Direct Loans)
• Possible Wage Garnishment (Perkins Loans & 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