• If you do not pay your lender for 270 days they will file a claim for payment with the Guarantor for collections on your loan.
• Payment is due in FULL immediately.
• You may suffer damage to your credit report.
  • RIHEAA will report your default to the national credit bureaus if payment in full is not made within 60 days from default
  • A negative trade line may appear on your credit report for at least SEVEN years for each disbursement of your loan
  • Example: You signed one promissory note, you had 6 disbursements of funds paid to your school, 6 negative trade lines on your credit report from RIHEAA.
• Who will see this default?
  • Potential employers
  • Creditors for cars, mortgages, credit cards, or apartment rental organizations
  • Anyone looking at your credit report
• Your wages may be garnished until the loan is paid in FULL.
• Your Federal and State income taxes may be garnished until your loan is paid in FULL.
• You may have collection costs up to 20% added to your outstanding balance.

• RIHEAA is willing to establish reasonable and acceptable payment arrangements with you.
• Your account will be assigned to a collection agency to establish a reasonable and acceptable payment arrangement.
• Keep in mind there is no statute of limitations on collections of a Federal Stafford Loan and collection effort may continue for many years.
  • Example: your loan defaulted in 1973 it is still collectable today until paid in full.

Yes! Everyone deserves a 'do over' even if you defaulted on your educational loans. The programs listed below are available to assist you back into repayment and improve your credit history!

• You will need to establish a reasonable and acceptable payment arrangement with your assigned collection agency.
• You will need to make 9 consecutive, voluntary monthly payments
• Your collection costs, if earned will be reduced from 20% to 18.5%
• You will receive a new lender and your account will be in good standing
• You should continue paying your assigned collection agency until you have been notified your rehabilitation is complete
• Your negative trade lines will be deleted from your credit report 30 to 60 days after rehabilitating!

• You will need to establish a reasonable and acceptable payment arrangement with your assigned collection agency.
• You will need to make at least 3 consecutive payments
• You will need to apply for consolidation with a company that accepts defaulted loans
• You should continue paying your assigned collection agency until you have been notified that your consolidation is complete
• Your credit report will be updated to read 'paid by consolidation' and the trade lines will stay on your credit report for at least 7 years