Consequences of default
If you default on your student loan, federal regulations require ECMC to:
- Send a bad credit report to these national credit bureaus:
- Start formal collection activity
- Turn your account over to a collection agency
- Add collection costs to your loan, increasing the total amount you owe
- Garnish your wages
In addition:
- Your federal income tax refund may be seized in an effort to satisfy your student loan debt
- Your loan could be transferred to the U.S. Department of Education for collection
- You lose eligibility for future student financial aid under the federal programs
- You lose your right to deferments or forbearance
If you have defaulted on your loan: Contact us at 888.780.7997, or collections@ecmc.org.
If you are worried you might default on your loan: Contact us at 888.295.1121, or defprev@ecmc.org.
