The consequences of defaulting on your student loan can be severe. If you default: 

• The entire unpaid balance of your loan and any interest you owe becomes immediately due (this is called "acceleration"). 
• You lose eligibility for deferment, forbearance, and other benefits such as the ability to choose a repayment plan. 
• You lose eligibility for additional federal student aid such as grants or Federal Work-Study. 
• Your default will be reported to credit bureaus, which will damage your credit rating and negatively affect your ability to get a credit card or to buy a car or a house. It may take years to reestablish a good credit record. 
• You may become unable to purchase or sell assets such as real estate. 
• Your tax refunds and federal benefit payments may be withheld and applied toward repayment of your defaulted loan (this is called a “Treasury offset”). 
• Your wages may be garnished. This means your employer may be required to withhold a portion of your pay and send it to your loan holder to repay your defaulted loan. 
• Your loan holder can take you to court. 
• You may be charged court costs, collection fees, attorney’s fees, and other costs associated with the collection process. 

If you are still in school:

• Borrow only the amount that you need to cover your costs and what you can reasonably expect to repay in the future.
• Know the type of loan(s) you are receiving and learn about your rights and responsibilities as a borrower.
• Make sure you understand your repayment obligation and learn about your repayment options.
• Consider making interest payments while you are in school. This will reduce the amount you owe after your graduation.
• Keep copies of any records you receive about your loan, such as any emails or letters you may receive or documents you sign. Keep note of the date and amount of any payments you make.

If you are already in repayment:

• Make sure you know the name of your federal loan servicer and how to contact them. You can find this information by logging in to https://studentaid.gov.
• If you move or change your phone number, email address, or name, make sure you notify your federal loan servicer.
• Talk to your federal loan servicer if you have questions about the terms of your loan or concerns about your ability to repay so they can explain your repayment options.
• Seek help as early as possible if you have any difficulties making your loan payments. There is help available to you.