You can be declared in default if you fail to make payments according to the repayment agreement terms of your loans as noted in your promissory notes. One or more of the following options can happen if you are declared in default.
The entire balance may be declared due and payable immediately.
The default may be reported to credit agencies.
Legal action against you may ensue.
Garnishment of wages or tax refunds may be enforced.
You become ineligible for future federal student aid.
You may become ineligible for certain types of employment.
Late or missed payments
Late payments can also adversely affect your credit report. Delinquent payments are made to the national credit bureaus on a monthly basis. This may stay on your credit report for up to seven years. Credit worthiness may be impaired due to delinquent payment history. Ability to borrow future credit based student loans may be affected if you have a poor credit history.
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