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Why Paying is Important

Delinquency Can Turn Into Default

If you stop paying your student loan(s), they may move from delinquent status to default.

If you default on your loan(s), you lose access to important loan features that could help you manage your debt, such as deferment, forbearance and some repayment plans. Contact your loan servicer(s) if you are unsure of your loan status.

Default May Impact Your Financial Health

Depending on the loan types and date on which you received your loan(s), your account can enter default after as few as nine months of missed payments.

Some of the consequences of defaulting on a federal student loan(s) include:

  • Losing benefits like deferment, forbearance and flexible payment options
  • Initiating the administrative wage garnishment process
  • The government may seize your tax refund or other government payments
  • Your loan balance may increase due to federally mandated collection costs
  • The defaulted status may be reported to national consumer reporting agencies
  • Your loan(s) can be placed with a third-party collection agency
  • You can be sued for the entire loan amount

If you are unable to make your student loan payments, contact your loan servicer(s). If you need additional help, contact Solutions at ECMC. We may be able to help you find options for your situation and if necessary, assist you with any paperwork. Our counselors have helped many people overcome issues with paying their loans.

Are You at Risk of Default?

If you don't know the current status of your loan(s), you may already be delinquent or in default. Contact your loan servicer(s). If you don't know who your loan servicer(s) is, visit, the Federal Student Aid (FSA) website, which is the central database for federal student loan information.

If you are having trouble making your payments, contact your loan servicer(s). If you need assistance, contact Solutions at ECMC. We may be able to help you avoid the consequences of default.