Reasons to Pay
If something should happen and for some reason you can't pay, call your lender/servicer to make arrangements. It's possible you could qualify for a student loan deferment or forbearance of the loan. Just whatever you do, don't default.
| Consequences of Defaulting on Student Loans: |
- No more financial aid.
- The entire student loan is due in full.
- Collection costs up to 19.5 % could be added to your student loan.
- The defaulted loan will appear on your credit report for up to seven years. (Try leasing a car with that!)
- Your employer could be served a legal garnishment notice requiring them to forward 15% of your pay towards repayment of your loan.
- Your income tax refunds could be withheld and applied toward your loan repayment.
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| AES Default Prevention Loan Counselors are available Monday through Friday, 8:00AM - 8:30PM EST at: 1-800-328-0355 |
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