Perkins Loan Services

Loan Default

Default is defined by federal regulations as "the failure of a borrower to make an installment payment when due or to comply with other terms of the promissory note or written repayment agreement".

Your loan payment is due on the 1st of each month.

When loans are 2 months past due, a monthly late fee of $8.00 is applied to each loan. A late fee will be added to all loans with a past due principal balance.

A late payment will have a detrimental effect on your credit history. The University reports to the 3 major credit bureaus monthly. For more information, please see the Credit Bureau section.

If your loan(s) goes into default, you might be eligible for a loan repayment agreement. During the loan repayment agreement, you must pay all the past due interest, current due interest, late fees, collection agency fees (if applicable) in 9 on-time consecutive monthly payments. Once you have successfully completed the repayment agreement, your loan will be considered rehabilitated and the negative history regarding your loan will be removed from your credit report. Loan rehabilitation is only offered once throughout the course of your loan.

It is important to contact our office as soon as possible if you are unable to make a scheduled payment. We cannot help you unless we know there is a problem. Do not make the mistake of ignoring your loan.

For information regarding defaulted student loans, please refer to this page on the Department of Education's web site: http://www.ed.gov/offices/OSFAP/DCS/index.html.