If you fall behind on your regular scheduled payments you are considered delinquent by your lender. During delinquency your account balance will continue to grow as interest and late fees accrue. If you fall 60 days or more past due on your payments, EdFund will contact you to help you evaluate options for resolving your past due account. If you fail to make the required payments on your loan(s) for a total of 270 days, the entire outstanding balance of your loan will become due in full. Your lender can then file a claim for default with your guarantor. The consequences of defaulting on your student loan debt are serious:
Your defaulted loan is reported as a collection account to national credit bureaus. As a poor credit risk, you will find it increasingly difficult to obtain loans of any kind.
Collection costs of up to 25% of your balance are added to your debt.
You become ineligible for further financial aid until your loan is paid in full or you have entered a qualifying repayment agreement with EdFund
Your school may withhold academic transcripts.
Your tax refunds may be withheld to repay the defaulted student loan.
Federal payments to you, including Social Security retirement and/or disability income, may be reduced.
Your wages may be garnished.
Your loan may be assigned to a collection agency.
You lose the right to defer payment or to request a forbearance.
Missed payments? To avoid default, contact your lender or EdFund Default Prevention Services at 800.298.9490 immediately.
