A loan is in default if the borrower (1) fails to make a payment when due, (2) fails to submit on or before the due date of a scheduled payment, proper documentation requesting forbearance, deferment, or cancellation; or (3) fails to comply with the terms of the promissory note (i.e. not providing the school with name or address changes).
Consequences of default
- Past due information reported to national credit bureaus.
- Late charges
- Official academic transcripts withheld and restriction on further registration from University of Nebraska at Kearney
- Ineligible to receive additional federal or state financial aid
- The entire principal balance of the loan may become immediately due
- Placement of the loan with a collection agency where the additional costs will be added on to the loan balance
If your loan is already in default, contact the school to see if you are eligible for deferment, forbearance or to make payment arrangements. Also see loan rehabilitation.