If a borrower fails to repay his/ her student loan on a timely basis, he/ she will be considered in default and may encounter the following consequences:
- Reporting to national credit bureaus, which may cause a negative effect on the borrowers credit rating
- Assessment of late charges
- Restriction of access to institutional records
- The borrower may be ineligible to receive additional federal or state financial aid
- The entire unpaid balance of the loan, including interest, may become immediately due and payable
- Placement of the loan with an attorney or collection service; costs associated with the collection of any loan will be added to the amount owed