Southern Illinois University Carbondale (SIUC) participates in the Federal Perkins Loan Program, and the Federal Direct Stafford/Ford Loan Program.

Both loan programs are designed to be part of a funding package that will assist students in paying for a college education. Financial aid comes from a variety of programs, including loans, and it is definitely worth the time to consider all financial aid options before borrowing a student loan. Investigate all potential grants, scholarships and work programs. Be an educated consumer and learn the basics of borrowing before accepting student loans.

Remember that STUDENT LOANS MUST BE REPAID! There are serious financial consequences that will impact a borrower's life after college if student loans aren't repaid in a timely manner!

If a borrower does not take responsibility and repay a student loan, it will go into default. Defaulted loans are reported to national credit agencies, affecting credit ratings and future ability to borrow money. If collection efforts fail, a defaulted loan is eventually assigned to the federal government. In addition, the following could occur:

• Loss of eligibility for all federal student aid programs including student loans
• Loss of deferment or monthly payment options
• Garnishment of wages
• Loss of certain professional licenses
• Reporting of the default to the IRS, causing federal tax refunds to be withheld and applied to the loan balance. Many states (including Illinois) also withhold state income tax refunds
• If legal action is required, responsibility to pay for collection charges and attorney fees
• The borrower will still owe the balance of the loan!