Federal

Default occurs when a loan reaches 270 days past due. Defaulted loans are assigned to the guarantor for collection. Consequences of default may include: a 24.34% collection cost is added to your account, the worst possible credit rating is reported to consumer reporting agencies, state and federal tax refunds may be seized, your account may be assigned to a collection agency, and/or you may be sued or have your wages garnished.

Private

Default occurs when a loan reaches 180 days past due. Defaulted private loans are assigned to a collection agency and are reported to consumer reporting agencies.

*If you have a co-signer on your private loan(s), a defaulted status will also affect the co-signer's credit report.