Avoid Default

What is default?

To default means you fail to make your payments on your student loan as scheduled according to the terms of your promissory note, the binding legal document you signed at the time you took out your loan.

What are the consequences of default?

It is extremely important to contact New Mexico Student Loans before missing your first payment so that arrangements can be made before your loan becomes delinquent. If you don't make your payments, your loan may go into default. There are many options available to help meet the repayment obligation on your student loan. Some consequences of default may include, but aren't limited to, the following:

  • You may have litigation brought against you.
  • Your wages may be garnished.
  • Part or all of your state and/or federal tax refund may be intercepted.
  • Due to legal judgment, you may have a lien placed on present and future properties.
  • You will lose eligibility for any additional federal student financial aid.
  • You will lose the cost saving benefits of the Advantage Program
  • Deferment and forbearance will no longer be available to you.
  • Your default will be reported to all national credit bureaus and your credit will be affected for many years.

We can help

If you have further questions, please contact us.