After you leave school and start to repay your student loans, it's important to stay in touch with your loan servicer, especially if you are having difficulty making payments, because there may be alternative repayment options available to you. If you need contact information for your lender, please log in to the National Student Loan Data System (NSLDS).
Defaulting on a student loan is serious. Default is reported to all national credit bureaus. This could mean that you would not be able to obtain a credit card, mortgage or a car loan. Your name will also be given to the Internal Revenue Service (IRS) who may take your State and Federal Income Tax refund. You will lose your rights to deferments and forbearances. Finally, legal action may be taken against you and the interest rate you pay on your loan may increase, and your wages may be garnished. In addition, you will not be eligible for financial aid at any school until your default status has been resolved satisfactorily.