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STUDENT LOAN DEBT REPAYMENT DEFAULT
When are you in default on your student loan repayment?
If you don’t make your payments on time, and you miss more than 270 days in your loan repayment, you will go into default on your student loan. The student loan debt is similar to others loans like car loan, mortgage loan, etcetera.
After you graduate, leave school, or drop below half
time enrollment, you have a six-month grace period
before you begin repayment. During the grace period
on a subsidized loan, you don’t have to pay any principal,
and you won’t be charged interest. During the
grace period on an unsubsidized loan, you don’t have
to pay any principal, but you will be charged interest.
As mentioned, you can either pay the interest or it will
be capitalized.
Your lender will send you information about repayment,
and you’ll be notified of the date repayment
begins. However, you’re responsible for beginning
repayment on time, even if you don’t receive this
information. Failing to make payments on your loan
can lead to default.
Consequences of not repaying your student loan
- A part of your salary may be confiscated until you repay your loan in full.
- Default report to all national bureaus.
- Procurement expenses and attorney honoraries will be charged to you.
- Addition of late fees and collections cost to the total cost of your loan (principal amount plus interest).
- You might become not eligible for renewal of your professional licence.
- If you’re entitled to tax devolution, it may be retained, and so may other state or federal payments to you.
- You may lose any federal benefit.
- You may lose every other kind of federal student aid.
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Student loan repayment
Student loan consolidation
Student loan repayment 
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