The goal of the Default Prevention Team at Arkansas Baptist College is to assist you with keeping your current loan(s) out of default. If you are delinquent on your account, we want to help you bring it current. We are here to serve both our current and former students. If you are having problems, please contact us at:
You may postpone your payments if you qualify for an Economic Hardship, In-School, Unemployment, of Disability deferment. Qualification is determined by current economic, enrollment, employment, or disability status. You are entitled to any of these deferments if you qualify.
You may qualify for a Mandatory or Economic Hardship Forbearance. Please contact your lender/servicer for more information on forbearance.
You may be eligible to consolidate you loans. Loan consolidation often reduces your monthly student loan payment. (to learn more, see Student Loan Repayment Options and Student Loan Consolidation).
You may qualify for Income Based, Graduated, or Lowered Payment plans.
Contact your servicer to get an application to apply for a deferment, forbearance, or consolidation.. (Here’s how to find the servicer of your student loan.)
If you do not resolve your delinquency before your account reaches 270 days past due, your loan(s) will be declared in default. If a default claim is paid, the entire balance of your loan(s) will become due and you will no longer be eligible for Title IV Financial Aid or for any part of the options described above.
In certain limited circumstances, you may be able to cancel your student loan(s) — meaning that you no longer have to pay it. Doing this is not easy; you’ll have to meet specific conditions depending on the type of loan you have.
Often, when you cancel your loan, the government will also reimburse you for payments already made, and help clean up your credit record. In some situations, you won’t be able to cancel the entire loan, but you may be able to get rid of a portion of the loan.
Loan cancellation (also called loan discharge) is available only in certain, specific situations, including:
If you want to set up a repayment plan, postpone payments, consolidate your loans, cancel a loan, or apply for some other government program, you need to know both what type of loan you have and who holds your loan. To learn what type of student loan you have, see Types of Federal Student Loans.
If you’re in default on your student loan, you’ve probably heard from the holder, because it’s trying to collect the loan. If you’re not in default, it’s often more difficult to find out who holds your loan. Try these sources: