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If
you have stopped making payments or defaulted on your student
loan(s) you can bring the loan(s) into good standing.
This is important if you are planning to go to school,
because additional financial aid is not available until existing
student loans are current. When you default on student loans:
The entire unpaid amount of the loan becomes due and payable
immediately.
For example, if you had a $20,000 loan to be paid over ten
years, the entire amount plus interest and late charges would
become due in a single payment.
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You
become ineligible to receive additional federal financial
aid.
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You
lose all loan deferment opportunities.
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The
default is reported to credit-rating agencies.
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Litigation
is started to have money taken from your wages, checking
and savings accounts, and/or tax refunds in order to repay
your loan. |
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