It is important to repay your student loans, maintaining a good payment history will help with your credit. Students that are having problems paying, there are other options available to you.
Those who choose to ignore their obligation and fail to repay, there account will be submitted to an outside Collection Agency and will be unable to get your transcript, diploma and/orreceive financial aid.
Loans that remain in default may be assigned to the State of New Jersey or the Federal Government who will pursue collection action indefinitely. State and Federal tax refunds willl be withheld to clear up the defaulted loan.
Consequences of a Defaulted Perkins Loan
The remaining balance and interest will become due immediately your credit rating could be tainted for up to 7 years and will be reported to all credit bureaus.
Late charges will be assessed.
You will be unable to request copies of your transcript.
You will be ineligible to receive federal and state financial aid.
Your loan will be submitted to a Collection agency and you will be responsible for any fees that are accessed by them, including any legal fees.
Your account may be submitted in for litigation and the borrower will be responsible for all fees assessed.
Your wages may be garrnished to repay the loan.
Your income tax refund and/or home rebate may be seized to repay the loan.