Saint Louis University

Delinquency and Default

The most frequently missed payment for medical students/residents is the first payment.  This missed payment is usually due to changes in name or address. One missed payment can have very serious consequences.

Delinquency is failing to make one scheduled monthly payment.


Default is failing to make payment for 270 consecutive days.


Both delinquency and default are very serious and can result in:


  • Reports to the national credit bureau which may negatively affect your ability to obtain future credit.
  • The entire unpaid balance of your loan(s), including interest, may become due and payable immediately.
  • You may be ineligible to receive additional federal or state financial aid funds.


Your professional license may not be renewed or may be revoked.

  • Your wages may be garnished.
  • Your federal and state income tax refunds and any lottery winnings may be withheld.
  • You may lose deferment possibilities.
  • Your account may be referred to a collection agency.
  • You may be charged collection cost and attorney fees.  


How do you avoid delinquency and default?

  • Update your address and other contact information with your servicer. 
  • Make sure your deferment/forbearance request has not expired.
  • Write the dates you need to (re)apply by on your calendar to ensure that you remember.
  • Make your monthly payments on time, put payment due dates in your calendar.
  • Sign up for Automatic withdraw so payments are taken directly from your bank account.
  • Choose a repayment option that works for you and create a repayment strategy. 
  • Create a budget so you do not overspend.
  • Keep a copy of everything you send to your servicer.  


What to do if you are contacted by your lender and they say your loans are delinquent or in default?

  • Do not give out any personal information over the phone, as it could be a phishing scam. Take their name and call back number. Verify that number with your loan servicer's web site.
  • Contact us. We may be able to assist you in resolving this issue. 
  • Look up your Lender's contact information and call them to find out which loan is delinquent or in default. 
  • Ask if it is a federal loan or a private loan.
  • Ask if you can apply for deferment or forbearance.
  • Ask if they are willing to work out flexible payment arrangements.
  • Ask what other options are available to you.    


Remember that you are the best source of information about your student loans. You have access to all the necessary paperwork, and services associated with your student loans. We encourage you to take a proactive stance with your loans. However, if you need assistance with your student loans, do not hesitate to contact us. We are available to assist you.

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