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What is Loan Default?

Failure to repay a loan according to the terms agreed in the promissory note. For most federal student loans, students will default if they have not made a payment in more than 270 days. If a student defaults on a federal student loan, the student will lose eligibility to receive federal student aid and may experience serious legal consequences.

The National Student Loan Data System (NSLDS) reports students who have default on their federal student loan to the financial aid offices. 

If you have a default on your federal student loan, you are not eligible to receive any federal student aid until your default has been resolved. 

How to regain eligibility for federal student aid? 
  1. Contact your lender or guarantee agency to make satisfactory repayment arrangements
  2. Request your lender or guarantee agency to fax written verification that the default has been resolved

        Fax to:  (209) 575-7719

Note: Don't know who your loan servicer is?  Log into your Federal Student Aid account and visit your "My Aid" Page.