Discuss the consequences of delinquency and default:

• If the borrower fails to make education-loan payments on time, the delinquency and any subsequent default will be reported to national credit bureaus. This report seriously affects the borrower's credit rating and may affect the borrower's ability to borrow from sources in the future.
• If the borrower defaults, the entire unpaid amount of the loan(s), as well as accrued interest, will become due immediately.
• The borrower will lose deferment options.
• The loan holder may refer the account to a collection agency.
• The borrower will become ineligible to receive further federal student financial assistance.
• The borrower's federal and state income-tax refunds may be seized.
• The borrower may be exposed to civil suit.
• The borrower's wages may be garnished.
• The borrower may be charged attorney fees and costs associated with collecting the debt.