DELINQUENT ACCOUNTS

DEFAULT

Default is failure to repay a loan according to the terms of the promissory note. Default also may result if a borrwer fails to submit requests for deferment or cancellation on time.

The consequences of default are severe. If a borrower defaults on a loan, the school, may take action to recover the money. A national credit bureau is notified of the default. This affects the credit rating of the borrower, making it difficult to borrow money from a bank to buy a car or a house.

COLLECTION

After attempts at collection, the university may refer delinquent accounts to an outside collection agency. At that time, all correspondence and questions should be directed to the collection agency. If� borrowers do not know which agency is handling their account, they can call (316) 978-6824 or email perkins@wichita.edu to receive that information.

COLLECTION COSTS

The borrower is responsible for paying all collection costs. This includes attorney fees and other charges necessary for the collection of any amount not paid when due.