Default Prevention & Resolution

Default occurs when a student is scheduled to make loan payments and repeatedly fails to do so over time. The consequences of default have a negative impact on a student’s present and future financial health.  For instance, the default will be reported to national credit bureaus which may impact the chances of obtaining credit, or financing an automobile or house.  It may also mean paying higher interest rates, increased insurance premiums, and in some cases may negatively impact a potential employer’s hiring decision. Fortunately, default can usually be avoided. However, should default occur repayment options, loan rehabilitation, and other default resolution options are available to the student.

In addition to the scholarship, grant, FFELP loan origination and prepaid tuition programs, ISAC has programs that educate student loan borrowers on the importance of good personal financial fitness, student loan repayment, and job placement and training, all of which assist borrowers in repaying their student loan(s).  

Our loan repayment information, Default Prevention materials, and Personal Finance Seminars are all designed to educate student loan borrowers on loan repayment, default prevention and good personal financial habits. Feel free to browse around and find the helpful information you need under the following categories:

• Student Loan Repayment
• Default Prevention Materials
• Placement and Job Training

How Does a Student’s Default Affect a School or Lender?

Using ISAC’s Default Prevention programs also benefits schools and lenders.  By using Default Prevention programs and materials, schools and lenders are able to promote the values of financial responsibility, and help to ensure an acceptable cohort default rate at an institution or on an institution's portfolio. High default rates negatively impact the lender’s bottom line and will threaten a school’s ability to participate in federal and state financial aid programs. 

ISAC is here to help.  We are very active in assisting students during loan repayment. Feel free to browse the complete list of programs that Default Prevention Services has to offer.

Default Prevention Outreach (Default Reduction Activities)

• Online Entrance/Exit Counseling
• Default Prevention Outreach Materials
• Personal Finance Presentations
• Mapping Your Future  
• On-site Training
• Consumer Credit Counseling Partnership
• Money Smart Week - Chicago

Default Prevention/Aversion Services

• Default Prevention Services
• DAAR (Default Aversion Assistance Request) Report
• Skiptracing Services
• National Student Loan Clearinghouse