Understand the Consequences of Delinquency and Default

Delinquency - is the failure to make payments when due and is reported to credit bureaus affecting your credit history.

Default - a payment unpaid after 270 days is assumed to be a default. Your servicer can garnish your wages and tax returns. The servicer can sue and you are responsible for costs. Collection agencies take over and add an additional 15-18% to the loan. Licences may be pulled. Student loans cannot be discharged in bankruptcy. Loans can only be cancelled if you die or become too disabled to work.

If you are experiencing any difficulties in repayment you should contact your servicer immediately to make appropriate arrangements and avoid the consequences of default.