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| Default Prevention |
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| Default Prevention - Default is the failure of a borrower to make installment payments when due, or to meet other terms of the promissory note. There are many ways to prevent your loan(s) from defaulting which include Deferment , Forbearance, and Income-sensitive Repayment options. For more information regarding OSFA's Default Prevention Program, visit Navigating Your Financial Future. |
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| Deferments - are tools available to borrowers to help them meet their loan repayment obligations. Once the repayment period begins, borrowers are entitled to defer principal payments on a FFELP loan when applicable eligibility criteria is met. Types of deferments and eligibility chart.
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| Forbearance - is a tool lenders can use to assist borrowers in meeting their loan repayment obligations. By granting forbearance, a lender permits a temporary cessation of payments, allows an extension of time for making payments, or temporarily accepts smaller payments than were previously scheduled. A lender is encouraged to grant a forbearance to prevent a borrower from defaulting on their loan repayment obligation. Forbearance Eligibility Chart.
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