Failure to pay
University Trust Fund loan
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, revenue refund recapture, 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 assesses monthly late fees and places a hold on your academic records if you fail to make a payment when due. A fee that is 20 percent of your monthly installment is added to the balance due whenever you make a late payment. For example, if your installment amount is $40 per month, the late fee will be $8 each month that your payment is late.
If you pay with a check from a bank account that has insufficient funds, SFC 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 Financial Collections representative if you have concerns or questions about your ability to repay your loans on schedule.