Campus News & Resources

Delinquency and Default Information:

If at any point in your post-secondary education you received federal student loans, we want to remind you (or a parent borrower) of your obligations to repay the loan, keep your account current, and stay out of default. While delinquency and default apply to loan borrowers who have graduated or are no longer enrolled in college and have entered into repayment status on their loans, we are providing financial literacy information to all students.

• You are legally responsible for repaying all federal student loans disbursed to you, regardless of which school you attended when the loans were issued.
• Payments are not applicable while the loan is in deferment or forbearance status.
• The U.S. Department of Education is your actual lender.
• Loan servicing (billing, customer service, etc.) is handled by contracted loan servicers, not RCU.
• You can check who your servicer is, update contact information, view your balances, and repayment options by logging into studentaid.gov with your FSA ID. A parent borrower would log in using their FSA ID.

Repayment

 When Repayment Starts:

• • Begins after:
    • Graduation,

• Dropping below half-time enrollment, or

• • • Leaving school.

• Includes a 6-month grace period before first payment is due.

• Repayment 101

Deliquency

What Is Delinquency?

• Failing to make payments on time after entering repayment status.
• Account is considered delinquent up to 270 days after missed payments.

 If You’re Struggling:

• Contact your loan servicer immediately.
• Review options like deferment, forbearance, or income-driven plans.

• More info: Avoid Default

Default

What Is Default?

• Failure to make a payment for 270+ days.

• Loan becomes immediately due in full (“acceleration”).

 Consequences:

• Tax refunds and federal benefits may be withheld (Treasury offset).
• Wage garnishment.
• Loss of deferment, forbearance, and repayment plan options.
• Ineligible for additional federal student aid.
• Negative credit report, harming your financial future.
• Possible legal action, added fees, and court costs.
• Potential Transcript holds.

 Help Available:

• Contact the Default Resolution Group: 800-621-3115
• TTY: 877-825-9923
• More info: Get Out of Default

 Options to Get Out of Default:

• Pay in full.
• Loan Rehabilitation: 9 on-time monthly payments.
• Loan Consolidation: Combine into one new loan.
• Income-Driven Repayment Plan (IDR).

If you have never borrowed a federal student loan you can disregard.