Tips to Prevent Defaulting on your Direct Loan
There is no reason ever to default on your loan. You have several repayment plan options as well as deferments and forbearances available as a Direct loan borrower.
Review these suggestions to help avoid loan default:
- Organize and maintain all student loan-related documents, including any school or lender entrance and exit loan counseling materials for future reference.
- Become familiar with your rights and responsibilities as a borrower.
- Make your scheduled monthly student loan payments on time.
- Notify your loan servicer of any name, address, and phone changes.
- Contact your loan servicer immediately if you are having problems making scheduled monthly payments.
- If you become unemployed, contact the nearest office of the Department of Labor and Springfield College’s Career Advising Center, (413) 749-3222, for assistance.
- If you begin to experience financial problems, consider calling the nearest budget/credit counseling office to discuss general debt management and repayment strategies.
- Review the various repayment plan options available to you and change your plan to have a lower monthly payment if needed.
- Consider other alternatives for repayment available to you as a Direct loan borrower such as a deferment or forbearance.
- Consider loan consolidation to reduce your monthly payments.
- Consider using electronic debiting to ensure that payments are made on time.