Student Loan Private

If you fail to make a payment on time, you’re considered delinquent on your Direct Loan. If you do not make payments for 270 days, you are considered to be in default. Default has severe and long-lasting consequences, including the following:

• The Department of Education can immediately demand repayment of the total amount due on the loan.
• The Department will attempt to collect the debt and may charge you for the costs of collecting.
• The default will be reported to national credit bureaus. Your credit rating will be damaged, which will make it difficult for you to make purchases such as a car or house.
• You are ineligible for Title IV student aid.
• You are ineligible for deferments.
• The Internal Revenue Service can withhold your federal income tax refund.
• Your wages may be garnished.