Office of the Bursar graduation cap
The Billing and Payment Gateway of UMass Amherst

Perkins Default and Loan Rehabilitation

Default

Default is failure to make a payment or submit a request for deferment, forbearance or cancellation on or before the scheduled payment date.

Possible consequences of default include:

  • Default will be reported to the Credit Bureau; this may impact the borrower’s ability to borrow money in the future.
  • Borrowers in default may be prevented from receiving additional Federal financial aid.
  • Defaulted loans may be assigned to a collection agency, resulting in additional fees and costs.
  • Defaulted loans may be assigned to the Department of Education debt collection services.
  • Defaulted loans may be accelerated, which means the entire loan becomes due and payable immediately.
  • Borrowers in default may lose their right to receive loan cancellation for service that is performed after the loan is accelerated.
  • Borrowers in default will lose their right to defer payments and their right to forbearance of their loan.

In addition to these consequences, Massachusetts General Law (C.7A, C.62D and 815 CMR 9.00) provides that any unpaid balances may be subject to late charges and processing fees as well as intercept of State and Federal payments and tax refunds.

If you find your loan is in default, please contact the Student Loans Office for resolution options.

Rehabilitation

Loan rehabilitation is a written and signed agreement between the University and a borrower in an attempt to resolve a defaulted loan.

In order to rehabilitate a defaulted loan, the borrower must make 9 consecutive on-time payments per the rehabilitation agreement. The minimum payment amount accepted will need to cover the total outstanding interest, late fees and penalty fees plus any additional interest and fees that will accrue over the 9 month period.

Payments will be due on the 1st of each month. To be on-time, the payment must be processed before the close of business on the last business day of that month. Important: please allow 2-3 business days for payment processing to take place.