Failure to pay
Your payments and those of other borrowers are the primary source of loan funds for current students. Failure to make your payments could jeopardize the University of Minnesota’s eligibility for loan funds to support current and future students. To protect the fund the University implements aggressive collection efforts, including the use of collection agencies; litigation; garnishment of wages, tax refunds, or lottery winnings; and credit bureaus. Your student loan repayment is required even if you:
- are dissatisfied with the education you received;
- did not complete your program;
- cannot get a job in your field.
Penalties
The University must assess a penalty charge if you fail to make a payment or evidence of entitlement for deferment and your loan becomes more than 60 days past due. This charge may not exceed 6 percent of the amount due (principal and interest) at the time the charge is calculated.
If you pay with a check from a bank account that has insufficient funds, Student Account Assistance (SAA) will assess the maximum charges allowed by law and apply the returned check fee to your loan account. You will be notified to replace the check, plus pay that fee.
If you fail to make loan payments, your loan will go into default status. As required by federal law, the University will disclose your loan default to a national credit bureau organization, along with other relevant information.
Please do not hesitate to contact a Student Account Assistance representative if you have concerns or questions about your ability to repay your loans on schedule.
