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Defaulting on your Loans

DO NOT DEFAULT ON YOUR LOANS!!!

If you default on a loan and the lender is unable to collect, the guarantee agency will take action to recover the loan from you. If your loan is discharged in bankruptcy or if you become totally and permanently disabled or die, the guarantee agency will discharge the insured loan obligation. Loans may not be included for consideration under bankruptcy laws for a period of seven years after leaving student status, except in exceptional circumstances.