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| Consequences of Default |
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| Default - is the failure to make installment payments when due, or to meet other terms of the promissory note or other written agreements with the lenders and the reasonable conclusion is that the borrower no longer intends to honor the obligation to repay the loan. |
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| The Consequences are:
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- Reported to Credit Bureau
- Administrative Wage Garnishment
- Offset of State and Federal Income Tax Refunds
- Civil Suit
- A Hold may be placed on Transcripts
- Offset Lottery Winnings
- Assign Account to U.S. Department of Education
- Collection Costs
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| Transcript Hold - Florida Statute 1009.95, requirement of all Florida Schools to abide to the following: No individual borrower who has been determined to be in default in making legally required scholarship loan, student loan, or guaranteed loan repayments shall be furnished with his or her academic transcripts or other student records until such time as the loan is paid in full or the default status has been removed. |
