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.
The longer your student loan payments are late, the lower your credit score falls, until your credit score is in the âpoorâ category. Eventually, the lender will conclude that you will never pay your student loan, and report that you have defaulted on the student loan.rom the credit bureausâ perspective, student loan cancellation and forgiveness all looks the same: Itâs a debt discharge caused by non-credit factors, and loan forgiveness does not have any impact on your credit score.