Federal Direct (Stafford) Loan Exit Information
What Steps You Need To Take
If you have received educational loans while at Delta College and either recently graduated or are no longer attending, you must arrange to begin repayment of your student loans. You may also want to correct your anticipated graduation date if you will be continuing your education at Delta College or apply for a deferment, forbearance or cancellation of your student loan. This information must be provided to the holder of your loan.
Default Information
Default is a legal term, but simply put it means that a borrower who has promised to repay a student loan has failed to meet his or her obligation. A loan is delinquent until it is 270 days overdue, at which time it becomes defaulted.
The consequences of defaulting on your educational loans can affect your future in significant ways. It can also impact your college or university, as well as American taxpayers.
To avoid loan default, you must repay a student loan according to the agreed terms on a timely basis. Avoid the negative consequences of loan default. They include:
- Poor credit rating - which is difficult to resolve
- Withholding of income tax refunds
- Garnishment of wages
- Loss of all Federal financial aid eligibility
What to do First
- Complete your Exit Loan Counseling: Click on this Exit Counseling link and complete the questionnaire.
- Before you contact your loan servicer, become knowledgeable about repayment options available through the Federal Direct Loan Program and the Federal Family Education Loan Program (FFELP). Delta College has put together some loan repayment options for you to become familiar with. There are other repayment options available also. View this brochure from the Michigan Guaranty Agency to learn about Loan Repayment Options You Can Afford.
- Learn about options available to help you meet your obligations. Don't miss out and read Having Trouble Repaying Your Student Loan?
- Don't let Loan Default happen to you!
- Use this handy loan calculator to estimate the amount of your monthly payments.
- You may also want to visit the National Student Loan Data System to view all of your past student loan activity, including loan type, amount, school(s) attended, loan status, and loan servicer information.