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Loan Default

Implications of loan default

If you don't pay back a loan according to the terms in your promissory note, you may be in default. Default occurs when you fail to make a payment on your loan when due or fail to comply with other terms of your promissory note. If you default on any federal student loan, the federal government may take some serious actions against you. You might:

  • lose wages and tax refunds (both of which may be withheld and applied towards your unpaid loans)
  • lose eligibility for additional future student aid
  • be unable to get loans from any other source for purchases like a home or car
  • lose job opportunities, or be unable to obtain a professional license
  • have your defaulted loan reported to national credit bureaus, and your credit rating may be damaged

Indiana University FFELP/DL Default Rates

Campus

FY Being Reported

# Entering Repayment

# In Default

Default Rate

Kokomo

 

 

 

 

 

1992 

315

14

4.4 


1993

298

18

6.0

 

1994

301

25

8.3


1995

359

31

8.6

 

1996

330

30

9.0

 

1997

333

14

4.2

 

1998

362

13

3.5

 

1999

352

11

3.1

 

2000

303

11

3.6

2001

334

6

1.7

 

2002

283

5

1.7

 

2003

392

12

3.0

 

2004

465

15

3.2

 

2005

693

30

4.3

2006

824

21

2.5

2007 

 616

 20

3.2 

2008 

478

30

6.3

2009 564 27 4.8
2010 636 57 9.0
2011 713 80 11.2%  Draft


Kokomo Average Default Rate FY 1992-2011       5.3%

Source: US Dept of Education National Student Loan Data System

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