If you do not take responsibility and repay your loan on time, it will become delinquent and possibly go into default. Defaulted loans are reported to national credit agencies, which can negatively affect your credit rating and ability to purchase a car or home, or to obtain financing for other purchases in the future.
The following may also occur:
- Collectors will call you - You still have to repay the loan even if you are in default
- The entire unpaid balance will become immediately due and payable
- Additional fees and interest may be charged to you
- You'll have a negative credit report, which can make it very difficult for you to buy a car or a home in the future
- You may lose the right to deferments and forbearances
- You may lose eligibility for other student aid and assistance under other federal benefit programs
- Your salary may be garnished - that is, the government, or a collection agency, will collect part of it
- The government may collect loan payments from your income tax refunds and lottery winnings
- A lien may be placed on any property that you own
- Legal action may be taken against you
- You may not be able to receive a professional license or renewal
- The loan program's future will be affected, jeopardizing future students' educational opportunities
- The references you supplied on your loan application may be contacted
Lender and Servicer Links
- Heartland ESCI (formerly Campus Partners)- services UW campus-based loans
- Federal Direct Stafford, Grad PLUS or Parent PLUS Loan
- Alaska Student Loan
For Private Loans, please refer to your promissory note for lender contact information.
If you are having trouble making your scheduled loan payments , do not hesitate to ask for help. Don't wait until default occurs.