Regulatory compliance is an organization's adherence to laws, regulations, guidelines and specifications relevant to its business. Violations of regulatory compliance regulations often result in legal punishment, including federal fines. Download this free guide.
If you fail to meet the terms of your loan and make your scheduled payments, your loan will eventually go into default. After you are 270 days delinquent, your lender can file a claim with the guarantor of your student loan(s). This means that the guarantor will pay the money you owe to your lender. The guarantor will then be responsible for collecting your loan on behalf of the federal government through a variety of options.
But if youâve defaulted on a federal student loan, your tax refund may not appear as expected. Most federal student loans are considered to be in default when payments are 270 days or more past due.Once your student loan hits default status, the federal government can and will go to extreme lengths to reclaim its money.ost federal student loans are considered to be in default when payments are 270 days or more past due. Once your student loan hits default status, the federal government can and will go to extreme lengths to reclaim its money.