Saint Louis University

Delinquency and Default

Delinquency is defined as when loan payments are not received by their due dates. Default is defined as failure to repay a loan according to the terms agreed to in the promissory note. Failure to make payment for 270 consecutive days will result in a defaulted status. Making a late payment happens from time to time, however, it is important to not make a habit out of it.

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

  • Being reported to the national credit bureaus; this 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 and forbearance possibilities
  • Your account may be referred to a collection agency
  • You may be charged collection costs and attorney fees 

  How do you avoid delinquency and default?

  • Update your address and other contact information with your lender
  • Make your monthly payments on time, put payment due dates in your calendar
  • Be aware of the end dates for your deferment/forbearances, write the dates you need to reapply by on your calendar
  • Sign up for automatic debit 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

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

  • Call your servicer to find out which loan is delinquent or in default
  • Ask if you can apply for deferment or forbearance
  • Ask what other options are available to you
  • Contact us, we may be able to assist you in resolving this issue

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.

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