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.
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, 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.
