Consequences of Defaulting on your Student Loans

If you are not making payments on your student loans and do not take action to cure your default, you may face the following consequences:

• Your wages may be garnished
• Your income-tax refund may be seized
• Not eligible to receive additional federal student aid
• You may be sued
• Your credit rating will suffer

Resolve Your Defaulted Loan

Several ways you can repair your defaulted student loan:

• Pay your loan balance in full
• Make satisfactory repayment arrangements with the holder of your loan
• Rehabilitate your loan
• Consolidate your loans

Locate your Student Loans

You can obtain contact information for your student loans at www.nslds.ed.gov. If your defaulted loan has been assigned to the U.S. Department of Education, contact Debt Collection Service at, 800-621-3115. If you are unsure of the holder of your student loans, contact your school for additional guidance.