Top Ten Ways to Avoid Default

Top Ten Ways to Prevent Defaulting on a Student Loan

1. Understand your rights and responsibilities regarding your repayment obligation as well as your repayment options and your relief opportunities.
2. Borrow for college expenses only. Borrow only the amount you need and only what you can reasonably expect to be able to repay.
3. Consider making small student loan payments while in school. This will reduce the amount you owe after graduation.
4. Make loan payments on time if possible. If not, fill out a forbearance/deferment to postpone payments until you can pay.
5. Ask for help as soon as possible if you are having trouble making your payments on time.
6. Keep everything regarding your loan. Make copies of all letters, canceled checks, and any forms you sign.
7. Notify your lender anytime you have a change of address, new phone number, you change schools or your enrollment status changes.
8. Keep credit card debt to a minimum or avoid credit card debt completely.
9. Create and maintain a budget that is within your monthly income.
10. If you have ANY questions, just ask! We are here to help!