Implications of loan default
If you don't pay back a loan according to the terms ofthe Master Promissory Note (MPN), you may default on the loan. Default occurs when you fail to make a payment on your loan when payment is due or fail to comply with other terms of your promissory note. If you default on any federal student loan, the federal government may take some serious actions against you. For instance you might:
- Lose wages and tax refunds (both of which may be withheld and applied towards your unpaid loans)
- Lose eligibility for additional future student aid
- Be unable to get consumer loans from any other source for purchases like a home or car
- Lose job opportunities, or be unable to obtain a professional license
- Have your defaulted loan reported to national credit bureaus, thereby damaging your credit rating
| Campus | FY Being Reported | # Entering Repayment | # In Default | Default Rate |
|---|---|---|---|---|
| Bloomington | 1992 | 4,650 | 159 | 3.4% |
| 1993 | 4,460 | 148 | 3.3% | |
| 1994 | 4,367 | 139 | 3.2% | |
| 1995 | 4,556 | 217 | 4.8% | |
| 1996 | 5,417 | 286 | 5.3% | |
| 1997 | 5,710 | 302 | 5.3% | |
| 1998 | 5,509 | 242 | 4.3% | |
| 1999 | 5,657 | 254 | 4.4% | |
| 2000 | 5,890 | 284 | 4.8% | |
| 2001 | 5,578 | 219 | 3.9% | |
| 2002 | 5,307 | 174 | 3.2% | |
| 2003 | 5,657 | 139 | 2.4% | |
| 2004 | 6,122 | 144 | 2.3% | |
| 2005 | 9,311 | 153 | 1.6% | |
| 2006 | 10,045 | 182 | 1.8% | |
| 2007 | 6,897 | 153 | 2.2% | |
| 2008 | 5,233 | 134 | 2.5% | |
| 2009 | 5,597 | 105 | 1.8% | |
| 2010* | 6,010 | 269 | 4.4% | |
Bloomington Average Default Rate FY 1992-2010 3.3% |
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| *Draft figures – official numbers not yet available | ||||
| Source: US Dept of Education National Student Loan Data System | ||||
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