Delinquent - Borrowers in Delinquency
"Delinquent - Borrowers in Delinquency" submitted by SchoolGrantsfor Editorial Team and last updated on Monday 9th January 2012
If you fail to make a payment on time, you are considered delinquent and late fees may be charged. If you fail to make payments for 270 consecutive days, the loan goes into default. If you fall behind on your regular scheduled payments you are considered delinquent by your lender. During delinquency your account balance will continue to grow as interest and late fees accrue. If you fall 60 days or more past due on your payments, EdFund will contact you to help you evaluate options for resolving your past due account. If you fail to make the required payments on your loan(s) for a total of 270 days, the entire outstanding balance of your loan will become due in full. Your lender can then file a claim for default with your guarantor.
Delinquency: the state of being behind on your loan payments.
Avoid Delinquency and Default
An explanation of the fees you might be charged during the repayment period, such as late charges and collection or litigation costs if you’re delinquent or in default. You MUST continue making payments on your student loan until you have been notified that your request for deferment has been granted. If you don’t, and your deferment is not approved, you will become delinquent and may default on your loan.
It is important to avoid becoming delinquent. One way is to make on-time monthly payments to your lender. A payment received one day late is considered delinquent and a lender may collect a late charge for each late installment. Delinquent payments are also reported to national credit agencies and will damage your credit for years to come. Your school or lender will help you if you have difficulty making your payments.
Pay on time
- A payment received one day late is considered delinquent
- Delinquent payments are reported to national credit bureaus
- Always call your school or lender for help
- No debts delinquent 90 days or more for PLUS Loans
It may also be possible to cure the default by consolidating the delinquent loan before the lender has filed for a default claim. Since the consolidation loan is a new loan and it pays off the delinquent loans, it effectively wipes the slate clean. More about the Default on your loan.
In-school deferment request form if you are delinquent on loan payment
If you are enrolled in an accredited school at least half time, but received a notice from lender stating you are delinquent on loan payment, at that case you're eligible for a deferment. You will want to call your school and verify your enrollment status. You may need to complete an in-school deferment request form (L-50A) and have it certified by your school.: http://www.edfund.org/pdfs/l-50a_fillin.pdf
Contact Information for Borrowers in Delinquency
For assistance with your delinquent loan and options to bring it current:
Default Prevention Services
EdFund Default Prevention Services
PO Box 419035
Rancho Cordova, CA 95741-9035
E-mail to Default Prevention Services at solu...@edfund.org
Neglected and Delinquent State Agency
USED Neglected and Delinquent State Agency and Local Educational Agency Program
The Neglected and Delinquent Program under Part D of the ESEA consists of 2 subparts. Subpart 1 is the State Agency Neglected and Delinquent formula grant program; subpart 2 is the Local Educational Agency (LEA) program. The Subpart 2 program is funded through an SEA reservation of funding under Title I, Part a for supplementary education services to help provide education continuity for children and youth in State-run institutions for juveniles and in adult correctional institutions, so that these youth can make successful transitions to school or employment once they are released from State institutions. More details: http://www2.ed.gov/programs/titleipartd/index.html
NCLB Neglected and Delinquent Program To Help Provide Education Continuity:
The Part D, Subpart 1, State Agency Neglected and Delinquent (N and D) program provides formula grants to SEAs for supplementary education services to help provide education continuity for children and youths in state-run institutions for juveniles and in adult correctional institutions so that these youths can make successful transitions to school or employment once they are released. More details: http://www.p12.nysed.gov/nclb/programs/nd/
National Evaluation and Technical Assistance Center (NDTAC)
The National Evaluation and Technical Assistance Center for the Education for Children and Youth Who Are Neglected, Delinquent or At Risk is the result of a contract between the U.S. Department of Education and the American Institutes for Research (AIR). AIR is a nonprofit research organization that performs basic and applied research, provides technical support, and conducts analyses based on methods of the behavioral and social sciences. The overarching mission of NDTAC is to improve educational programming for neglected and delinquent youth.
National Evaluation and Technical Assistance Center (NDTAC) provides the following services:
- Direct Assistance
- E-mail Listserv
- Webinars (web-based teleconferences)
- Q&A Phone Calls
- Monthly Articles on N or D Topics
- Research Reviews
- Federal and State Data
- Policy and Legislation Information
- Library (web-based compilation of materials by topic)
More details about The National Evaluation and Technical Assistance Center for the Education of Children and Youth: http://www.neglected-delinquent.org/
Correctional Education Association: http://www.ceanational.org/
National Dropout Prevention Center Network: http://www.dropoutprevention.org/
National Crime Prevention Council: http://www.ncpc.org/
National Juvenile Justice Reference Service: http://www.ncjrs.gov/
- Deferment PLUS Loan and Perkins loans, Qualify for a deferment
- Deferment and Forbearance at a Glance as Repayment plans: Which one better? Deferment Options for Stafford (Direct and FFEL) and Perkins Loans