If you encounter financial difficulties in repayment of your student loan, contact the Perkins Loan Collection Manager (410-704-2212) about available options before you default on a loan.
Defaulting on your student loan has serious consequences:
- Your Perkins Loan account status is reported to national credit bureaus on a monthly basis. Your credit rating will be adversely affected should you default on your student loan.
- Your account will be charged a late fee for any payment that is thirty (30) days past due.
- Defaulted loans are transferred to the State's collection agency.
- Your account will be charged a 17% collection fee and be subject to legal action.
- All outstanding principal and interest will become due and payable immediately.