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Whats a defaulted student loan?

April 26, 2017defaulted student loan

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Whats a defaulted student loan?

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A. Loans are considered defaulted when a borrower fails to repay his or her loan according to the terms agreed upon in the Master Promissory Note (MPN). This usually happens when payment to the lender is at least 270 days late. Default can also occur for failure to submit on-time requests for a deferment or cancellation. If a loan defaults, the guarantor (OGSLP) purchases the loan from the lender and begins collection.