What might happen to me if I do not make payments on time?
The following actions may occur on a loan in default;
- Assessment of a $5.00 per month fee.
- Placement of a hold on your academic records that will cause transcripts to be withheld and future registration denied.
- Delinquency reported to a national credit bureau. Credit ratings remain on the Credit Bureau records for approximately seven years following the date of first delinquency. Delinquencies may affect your ability to obtain future loans and employment.
- Ineligibility for future Title IV financial aid until the loan is out of default.
- Placement of the loan with a licensed collection agency. Collection fees charged by the agency can be up to 30% of your loan balance if placed with a collection agency for the first time or 40% for subsequent collection efforts and/or litigation.