To meet the responsibility of paying back your student loan, you need to avoid two things: delinquency and default.

Delinquency
Delinquencies are late payments. A payment is late if the lender has not received it by the day after the due date.

Why should you care?
Delinquencies can cost you extra money and can affect your credit history for years.

• You could lose your ability to borrow money in the future.
• You could also be charged late fees if they apply under the terms of your loan.

Default
Default is falling behind on your scheduled payments over an extended period — usually 270 days or more. Being in default means that you have violated your loan agreement and the lender or servicer can request immediate payment in full.

Why should you care?
Under certain circumstances, federal and state laws require guarantors like TG to:

• Withhold a percentage of your wages until your account is paid in full.
• Report your default to all national credit bureaus.
• Add collection charges and attorney fees to the balance of your loan(s).
• Place a hold on the renewal of your State of Texas Practitioner's License.
• Seize your federal tax refund and other state or federal payments.
• Prevent you from receiving additional student aid and other federal benefits.

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TG Default Prevention
(800) 338-4752
prevent.default@tgslc.org