Avoiding Default

What is Default?

To default means you failed to make payments on your student loan as scheduled according to the terms of your promissory note.

Consequences of Default

  • A hold will be placed on all Brown University transcripts until the loan is brought current
  • Your student loan debt will increase because of the late fees, additional interest, court costs, collection fees, attorney’s fees, and any other costs associated with the collection process.
  • The status of your loan account is reported to all of the major credit bureaus every month. A past due or defaulted status will negatively impact your credit history for  up to 7 years
  • You will lose eligibility for additional federal student aid
  • Your employer (at the request of the federal government) can withhold money from your pay and send the money to the government. This process is called wage garnishment

Avoiding Default

Call the Loan Office and your federal servicer. If you're already past due, the hardest part is making that call! We are here to help you evaluate your options for managing repayment. Contact us at (401) 863-3296 or loans@brown.edu

Getting Out of Default

Deferment/Forbearance

If you've been having financial difficulty, we may be able to reduce the amount that is past due. The loan programs offer different options to postpone repayment through deferment and forbearance. We may be able to find a solution to help you bring your loan current.

Consolidation

You also have an option for getting out of default through loan consolidation. Loan consolidation allows you to pay off the outstanding combined balance(s) for one or more federal student loans to create a new single loan.