Most people want to pay their student loans. Sometimes, life events occur that make it challenging to meet the commitment. Student Loans of North Dakota is here to help.

If you don’t repay a student loan, it is known as defaulting on the loan. Default occurs when your loan payment is late by 270 days. There are serious consequences that can affect nearly every area of your life if you default so you should avoid it.

If you can’t make your loan payment, follow these steps:

  1. Visit with your loan holder. They want to help you! If you have changes in contact information or have difficulty making payments, call them immediately.
  2. Contact us at 1.800.472.2166 ext. 328.5707 or by email. We will explain your options so you can make a good decision.
  3. Read more about your repayment options and money management tools on this site.

There are serious consequences to not repaying your student loans.

Default consequences

Federal Student Loan

  • Your credit rating may be damaged. This may make it hard to get a car or home loan. You may not be able to rent an apartment or get a credit card.
  • It may be more difficult to get a job. Some employers check your credit rating before you are hired.
  • Up to 15 percent of your wages can be garnished without a court judgment and one-fourth of your wages can be garnished with a court judgment.
  • Your federal or state tax refunds could be intercepted for payment of your student loan. If this happens, your refund is sent directly to your loan holder.
  • You may be billed for collection fees, so the amount of your loan may increase by 25 percent.
  • School transcripts are placed on hold.
  • A lawsuit can be filed in civil court; you may be billed for attorney fees if you are sued for non-payment.

DEAL Student Loan

  • You and your co-signer’s credit rating may be damaged. This may make it hard to get a car or home loan. You may not be able to rent an apartment or get a credit card.
  • It may be more difficult to get a job. Some employers check your credit rating before you are hired.
  • One-fourth of your wages and your co-signer’s wages can be garnished with a court judgment.
  • You and your co-signer’s North Dakota tax refunds could be intercepted for payment of your student loan. If this happens, your refund is sent directly to your loan holder.
  • You will be billed collection fees, so the amount of your loan may increase by 25 percent.
  • A lawsuit can be filed in civil court. You and your co-signer may be billed for attorney fees or sued for non-payment.