Paying in full is a good idea
If you can afford it, paying off your loans is an excellent way to manage default. If within 60 days of defaulting you make arrangements acceptable to the loan holder to pay the loan in full, the loan holder will not report the default to credit bureaus.
Preserving your credit score is very important. Once a student loan default is reported, it can remain on your credit report for up to seven years, even after you pay it off.
Other reasons why paying your loan in full is a good idea are:
- You regain eligibility for additional federal financial aid
- Your tax refund and government payments will not be withheld
- You will realize interest cost savings
- You may realize collection costs savings
Contact your loan holder to pay off your loans. If you don’t know who your loan holder is, go to the National Student Loan Data System (NSLDS), which is the central database for all federal student loan information.
If ECMC holds your loans:
