Once your loan is assigned to The Office of Student Financial Assistance for collection, the following steps may be taken to recover the outstanding balance due:
Credit bureaus may be notified, and your credit rating will suffer.
Payments made to you by The U.S.
Treasury may be withheld toward repayment
of your loan.
State tax refunds may also be seized and applied to your loan.
You may have to pay additional collection costs of 24%.
Also, you may be subject to Administrative Wage Garnishment, whereby LOSFA will require your employer to forward 15% of your disposable pay toward repayment of your loan.
Professional Licenses and School Transcripts may be withheld.
Litigation may be undertaken to force the you to repay the loan.
Once a loan is declared in default, you are no longer entitled to any deferments or a forbearance.
In addition, you may not receive any additional Title IV Federal student aid if you are in default on any Title IV student loan until you establish satisfactory repayment arrangements.
Click here for information on getting financial aid after default.
If you have questions about any of these penalties you can call the Default Recoveries department at 1-800-256-6882 or you can e-mail us at: bhenderson@osfa.state.la.us