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.