Default

Failing to repay your student loans is a serious matter. Borrowers who are more than 120 days late with making a payment on their loans are placed in Default.


If you default on a federal student loan, the following may occur:

  • You may not receive additional financial aid to attend school. Students currently in default are not eligible for any type of federal financial aid at any school in the country.
  • Your credit score may be affected. This could seriously hurt your chances of taking out any future loans (i.e. house, car, etc.).
  • Your wages may be garnished. The Federal Government has the right to take money from your paycheck every week and apply it to your defaulted student loans … without your permission.
  • Tax refunds may be withheld. The Federal Government has the right to take any money owed back to you in federal tax refund and apply it to your defaulted student loan debt.
  • Professional licensures, such as nursing certificates and teaching licenses, can be suspended. The Federal Government has the right to suspend your ability to earn a living until you have made satisfactory repayment arrangements on defaulted student loans.
  • You may have professional property seized and auctioned. The Federal Government has the right to seize any professional equipment that you own and auction it to help repay defaulted student loan debt.
  • Social Security payments may be garnished to help repay defaulted student loans.
On top of all the things that can happen to you, there are also very serious things that can happen to Columbia State Community College should you default on your loans.

The U.S. Department of Education monitors every school that is allowed to award Federal Title IV funds. One stat monitored is how many students, past and present, are in active default. This number is called the Cohort Default Rate. Should Columbia State’s Cohort Default Rate rise too high, the Federal Government has the right to take away our ability to award any Title IV financial aid.

Ask yourself—could you have attended college without federal financial aid? If you default on your student loans, you could very well be costing future students the same opportunity that you are now given.

Thank you for taking Student Loan Default seriously!

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