Student Loan Default
Students who have not defaulted on a loan, may under certain conditions defer (postpone payment on) a student loan after leaving school.
See Borrower Rights and Responsibilities for a list of the more common conditions under which loans may be deferred.
Students who feel they may be eligible for a student loan deferment must contact their lender.
While applying for a deferment, the student must continue to make payments until the deferment is approved. If the payments are not continued, the student may end up in default status.
Students who are at risk of going into default.
If you don't make your loan payments, you risk going into default. Defaulting on your loan has serious consequences. Your school, the financial institution that made or owns your loan, your loan guarantor, and the federal government all can take action to recover the money you owe. Understand how missing a loan payment can be a problem, what default means and the consequences of default, and what you need to do if your loan is in default or if you think the default on your loan is an error. After reading this information, you may want to review Avoiding Default or Getting Out of Default. For more information about default, including consequences of default and how to resolve a defaulted loan, please visit this website.