ERIC Number: ED483615
Record Type: Non-Journal
Publication Date: 2004-Feb
10 Steps to Prevent Default: How To Prevent Default On Your Education Loans
Alaska Commission on Postsecondary Education
A brochure describes how student loan default can cause permanent damage to an individual's financial future. and how to prevent default. A student loan is a legal promise. In exchange for help funding one's education, a promise is made to repay the education loan. The promise is made by signing a Promissory Note for any funds borrowed. Loan default occurs if the balance of the loan is not repayed. Through a combination of smart money management and sound use of Alaska Commission on Postsecondary Education (ACPE) repayment options, loan payments can be kept on track. Staying current on student loans improves the student's credit rating, results in lower finance charges, and allows for continued loan eligibility. To avoid default students should (1) not borrow more than they need; (2) understand the promissory note; (3) organize their loan information for easy access; (4) stay current on their payments; (5) use their billing coupons; (6) use electronic payment options, and stay in contact with the loan agency.
Descriptors: Money Management, Loan Default, Loan Repayment, Student Loan Programs, Debt (Financial), Student Financial Aid, Higher Education, Paying for College
Alaska Commission on Postsecondary Education, 3030 Vintage Blvd., Juneau, AK 99801-7100. Tel: 800-441-2962 (Toll Free); Web site: www.state.ak.us/acpe.
Publication Type: Guides - Non-Classroom
Education Level: Postsecondary Education
Authoring Institution: Alaska Commission on Postsecondary Education