What does defaulting on a Federal Perkins Loan mean?
A Federal Perkins Loan goes into default one day after the payment due date. If a student has not made a payment by one day after the date the payment was due, the Federal Perkins Loan will go into default.
What are the consequences of defaulting on a Federal Perkins Loan?
If a Federal Perkins Loan goes into default, the University can demand immediate payment of the entire unpaid balance of the loan including principal, interest, late charges, and collection costs. All deferment, forbearance, and cancellation options are forfeited. All cases of defaulted loans are reported to all major credit bureaus and will affect the student’s future eligibility for federal aid. Unresolved defaulted loans are referred to outside collection agencies; Judgments, property liens, wage garnishments, and tax refund offset (tax refund goes to lender) may result.
How can I get out of default?
- Pay the past due amount.
- Request a deferment or forbearance in writing with supporting documentation. The request must be approved in order for you to get out of default.
- Consolidate loan.
- Loan Rehabilitation Program
Office Hours: M – Th. 8:30 am – 4:30 pm, Fri. 8:30 am – 12:00 pm
Phone: (951) 785-2238