Loan Issues - Defaults
Your Loan is in Default
The National Student Data System (NSLDS) shows that you stopped paying one or more of your student loans and they have gone into default. The Department of Education has suspended your financial aid eligibility until the defaults have been resolved.
Where to Find Your Loan History
You can find your student loan history, the status of each loan, the loan servicer or lender and their contact information on the National Student Loan Data System (NSLDS) at studentaid.gov. You will need contact information for loan servicers/lenders for all of the loans in default. If you have a Perkins Loan, contact the school where you received the loan for details. If you know your Perkins Loan has been assigned to the U.S. Department of Education, contact the ECSI Federal Perkins Loan Servicer.
How to Resolve Your Default
Find information on resolving loan defaults at studentaid.gov/manage-loans/default/get-out
Defaulted student loans can be resolved in the following ways if you meet the requirements for the option:
- Pay off the defaulted loan.
- Consolidate all defaulted loans, which pays the defaulted loans off with a larger
consolidation loan
- Find information on loan consolidation at studentaid.gov/manage-loans/consolidation
- Apply for a consolidation loan at studentaid.gov/consolidation
- Make payment arrangements with the loan servicer followed by 6 on-time monthly payments. The loan is still in default but does not prevent you from receiving financial aid.
- Make 9 qualifying monthly payments to rehabilitate the loan. This removes the default from your credit history.
In order for us to be able to clear this requirement, we must either:
- Receive a clearance letter from the loan servicer/lender(s) of all defaulted loans
- Once you have resolved the issue, ask your loan servicer/lender to fax a “clearance letter” to us at 316-978-3396. The clearance letter will state that the loan defaults should no longer prevent you from receiving federal student aid. This will be the fastest option.
- See that the loan statuses have been updated in NSLDS.
- It can take several weeks for NSLDS to be updated.
We cannot use any other documentation, such as letters from a consolidation lender showing a consolidation loan has been approved or payment arrangement contracts. We MUST have a letter from the holder of the defaulted loan or wait until NSLDS is updated.