There is no reason ever to default on your loan. You have several repayment plan options as well as deferments and forbearances available as a Direct loan borrower.
Review these suggestions to help avoid loan default:
- Organize and maintain all student loan-related documents, including any school or lender entrance and exit loan counseling materials for future reference.
- Become familiar with your rights and responsibilities as a borrower.
- Make your scheduled monthly student loan payments on time.
- Notify your loan servicer of any name, address, and phone changes.
- Contact your loan servicer immediately if you are having problems making scheduled monthly payments.
- If you become unemployed, contact the nearest office of the Department of Labor and Hampshire's Career Options Resource Center, 413.559.5445, for assistance.
- If you begin to experience financial problems, consider calling the nearest budget/credit counseling office to discuss general debt management and repayment strategies.
- Review the various repayment plan options available to you and change your plan to have a lower monthly payment if needed.
- Consider other alternatives for repayment available to you as a Direct loan borrower such as a deferment or forbearance.
- Consider loan consolidation to reduce your monthly payments.
- Consider using electronic debiting to ensure that payments are made on time.
