Loan default is the failure to repay a loan according to the terms agreed to when you signed your promissory note. Default occurs when you become 270 days delinquent in making a payment on your loan.
If you have applied for financial aid, in order to receive funds,
Financial Aid and Scholarship Services needs documentation from you and your lender showing default resolution. Federal and institutional financial aid cannot be awarded or disbursed until documentation is received. The disbursement of scholarships is not affected.
To resolve your loan default, refer to the
National Student Loan Data System to determine the holder of your defaulted student loan. Contact them directly for instructions on how to resolve your defaulted loan. Once the defaulted loan is resolved, please provide
Financial Aid and Scholarship Services with the appropriate forms of documentation from the guarantee or collection agency.
Appropriate documentation consists of any of the following items:
- Loan Repayment in Full.
- Loan Consolidation: Either agree to repay the new Direct Consolidation Loan under an income-driven repayment plan OR make three consecutive, voluntary, on-time, full monthly payments on the defaulted loan before you consolidate it, so you may repay the new Direct Consolidation Loan under any repayment plan for which you are eligible. For consolidation information please contact Direct Lending Consolidation at 1-800-557-7392.
- Loan Rehabilitation: Agree in writing to make nine voluntary monthly payments within 20 days of the due date AND make all nine payments during a period of 10 consecutive months.
Need additional help? Access 24/7 live chat, create a case from
My ASU Service Center or call 855-278-5080.
