If you have received a student loan or are considering loans to help pay for your education please read this. Below you will find helpful resources, frequently asked questions regarding loans and loan repayment. You may also want to visit our financial literacy page. This information is provided to help you determine if loans are the right option for you and provide you with tools to manage your finances, including budgeting to repay your loans.
To default means you failed to make your payments on your student loan as scheduled according to the terms of your promissory note, the binding legal document you signed at the time you took out your loan.
Your loan becomes delinquent the first day after you miss a payment. The delinquency will continue until all payments are made to bring your loan current. Loan servicers report all delinquencies of at least 90 days to the three major credit bureaus. A negative credit rating may make it difficult for you to borrow money to buy a car or a house (you will be charged much higher interest rates). You also may have trouble
It is important to begin repaying as soon as you receive a bill. Keep track of your student loan and learn how to manage your loan repayments.
If you are having trouble making payments on a loan from the William D. Ford Federal Direct Loan Program or the Federal Family Education Loan (FFEL) Program, immediately contact your loan servicer, the agency that handles the billing and other services for your loan.
If you are having trouble making payments on your Federal Perkins Loan, immediately contact the school where you received your loan.
Whether your loans are delinquent now or not, you should read our tips to help you avoid default.
If you have defaulted on any of your federal student loans, take the following steps:
The consequences of default can be severe:
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Kentucky Community and Technical College System
300 North Main Street, Versailles, KY 40383
Phone (859) 256-3100 | Toll-Free (Kentucky only) (877) 528-2748
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