12.14.09 | A Big Reason To Repay Your Stafford Loan
Did you know that colleges with high loan default rates over a period of two years may lose their eligibility to award Pell Grants, Stafford Loans, and other student loans? It is true. Not repaying your student loans might contribute to “ruining it for everyone” who wants to attend your alma matter in the future. In 2014 this law will become stricter. Schools that have a default rate of 30 percent or higher for three consecutive years will be ineligible for federal aid.
So don’t give your school a bad name and let your loans go into default. If you are unable to repay make sure you apply for student loan deferment. Student loans are not something to take lightly so make sure you know about your repayment obligations and options before you sign on the dotted line.
The Student Loan Help blog is sponsored in part by:
