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CONSEQUENCES OF PRIVATE LOAN DEFAULT

Families generally borrow private loans to cover college costs that remain after borrowing federal loans. �й������� private loans include Vermont Advantage loans or other �й�������-administered non-federal student loans. 

Make a plan now to end the consequences of default on your ������� private loan:

• placement with a collection agency
• a ruined credit history
• confiscation of state tax refunds, property tax adjustments and/or renter rebates through the Vermont Setoff Debt Collection Program to pay for your defaulted loan(s)
• or even a lawsuit against you.

MANAGING PRIVATE STUDENT LOAN DEFAULT

Got a goal? Let ������� help you reach it!

You have options available to get out of default on your �й������� private loan. Read the details below and if you still have questions, please call �й������� at 800-954-2440 or e-mail us at collections@vsac.org. �й������� can help!

INTRODUCING �й�������’S PRIVATE LOAN REHABILITATION PROGRAM

Remove your private loan default by making monthly payments through �й�������’s Private Loan Rehabilitation Program. Private loan rehabilitation is a one-time program that helps you get back into repayment!

How it works.

• Qualifying monthly payment amount is calculated based on your current balance and interest rate. The loan term is 30 years for variable interest rate loans or 20 years for fixed interest rate loans.

  What's next? Contact �й������� to determine your qualifying monthly payment amount and request a Private Loan Rehabilitation Agreement. Borrowers and any cosigner must each sign an agreement to participate.

• To qualify, you have to make 9 on-time payments within a 10-month period.

  What's next? Start making required payments after you contact �й�������.

• Successfully completing the Loan Rehabilitation Program removes the default from your credit history and may improve your credit rating.

  What's next? You may be on the path for meeting your goal!

• Eligibility for additional benefits upon successful loan rehabilitation, such as potential for limited short-term forbearance based on financial hardship and cosigner release.

  What's next? More benefits!

MAKE MONTHLY PAYMENTS

You can begin making one-time or automatically recurring monthly payments on your defaulted ������� private loan. Making unapproved payments will not remove your loan from default, so connect with ������� to develop an approved payment plan and make a fresh start.

COLLECTION PARTNERS

������� also works with collection agencies to support student loan repayment, while ensuring that borrowers with loans in default are aware of the consequences of their failure to repay and are aware of the options available to help them get out of default. ������� currently partners with the following agencies for collection expertise.

 

If you don't know which agency is currently collecting your loan, please call us at 800-954-2440.

If you defaulted on any of your federal student loans, not previously serviced by �������, contact the organization that notified you of the default as soon as possible so you can explain your situation fully and discuss your options.

�й������� serviced defaulted federal loan(s) were transferred to Trellis over the weekend of March 16, 2024.  Trellis can be reached by phone at (800) 222-6297.

Click for information on determining who your current loan servicer is.
Click to learn about ways to get your loans out of default.