Know your repayment options and
avoid defaulting on your student loan.

If you received a student loan, you are responsible for paying it back in a timely manner regardless of whether you graduated and received a degree or not. For parents with PLUS loans, even if the student you obtained the PLUS Loan for is unemployed or has not graduated you are still required to repay the loan.

Almost everyone goes through a difficult financial period and sometimes it just takes a little bit longer to get established in a good job after leaving school. You are still responsible for making regular payments. If your account is more than 60 days past due, a delinquency will be filed on your credit report. If you are more than 270 days behind on your payments, your loan will be placed in default status. The consequences of letting your student loans default can be high. OSLA will work with you to help you avoid defaulting on your student loans. Don't let your student loans go into default. Contact an OSLA Service Expert to discuss your options.

Options for Avoiding Default

There are several options for adjusting your payment schedule to make it easier for you to repay your loan.

Repayment Plans

OSLA offers our borrowers several different plans for repayment including graduated payments and income sensitive payments. Review the different repayment options available and contact an OSLA Service Expert to discuss your situation.


Under certain circumstances, a deferment can be requested. A deferment will keep your loan in good standing and allow you to postpone your payments. Review the different types of deferment and contact an OSLA Service Expert to discuss which type of deferment best fits your situation. They will help you make arrangements that can keep your account current and avoid default.


If you do not qualify for a deferment, you may still be able to obtain a forbearance. The forbearance will temporarily postpone your payments on your loan principal, but you will still be responsible for making regular payments on the interest. Review the information about forbearance and contact an OSLA Service Expert to discuss your situation.

The cost of defaulting on your student loans is high and may affect your life in ways you might not have thought about including:

  • Loss of eligibility for future grants and student loans
  • Collection costs adding up to 19%
  • Damaged credit report
  • 10% to 25% of net pay could be garnished to pay for the loan
  • Future tax refunds applied to student loan debt
  • Collection agency referral
  • Transcripts can be held by your school
  • Affect your ability to qualify for FHA and VA home loans

For more information on defaulted student loans, check out these other Web sites: