Perkins Loan - Default

Default occurs if you don’t make an installment payment on your Federal Perkins Loan when due or do not comply with the promissory note’s other terms.

The consequences of default are severe:

• The entire loan balance can be immediately due and payable.
• You won’t be eligible for additional federal student aid.
• Your account could be turned over to a collection agency. This would add on collection costs and possibly court costs and attorney fees. These costs will add up and it will take you even longer to pay off your student loan.
• Your account will be reported to a national credit bureau and your credit rating will be damaged. You might find it hard to obtain other types of loans such as car loans or home mortgages. It could affect your ability to rent an apartment if a landlord checks your credit. Your default will remain on your credit report for up to seven years.
• The federal government can take your federal tax refunds.

Make sure to contact the Federal Perkins Loan Officer at 402-375-7089 or perkinsloan@wsc.edu if you think you might have trouble making payments. Don’t ignore any calls or letters. Putting things off is never the answer. These loans won’t go away. The Federal Perkins Loan Officer will work with you to help you avoid the serious consequences of default.