Money Management FAQ

What happens if I do not pay back my student loans? If you do not pay your student loans, you will go intodefault status. What should I do if I have defaulted on a student loan? If you already are in default, find outwhat your options are. What if I am having trouble paying back my student loan? If you think you will not be able to make a payment, contact your loan provider to see what your options are. For more information, visit Federal Student Aid - Student Loan Delinquency and Default. What is Default? Failure to repay a loan according to the terms agreed to when you signed your promissory note. Default occurs when you become 270 days delinquent in making a payment on your loan(s). When a direct loan becomes 360 days delinquent, the loan is prepared for transfer to the department’s default resolution group. The consequences of default can be severe. What happens if I don't pay my loan back? Your loans will become delinquent and will eventually go into default. Default occurs when y...