Loan Default

Default is failure to make a payment or submit a request for loan benefits (if applicable) for deferment, forbearance, or cancellation on or before the scheduled payment date.

Possible consequences of default include:

  • Default will be reported to the Credit Bureau: this may impact the borrower's ability to borrow money in the future. 
  • Borrowers in default may be prevented from receiving additional Federal financial aid. 
  • Defaulted loans may be assigned to a collection agency, resulting in additional fees and costs. 
  • Defaulted loans may be assigned to the Department of Education debt collection services. 
  • Defaulted loans may be accelerated, which means the entire loan becomes due and payable immediately. 
  • Borrowers in default may lose their right to receive loan cancellation for service that is performed after the loan is accelerated. 
  • Borrowers in default will lose their right to defer payments and their right to forbearance on their loan. 

In addition to these consequences, Massachusetts General Law (C.7A, C.62D and 815 CMR 9.00) stipulates that any unpaid balances may be subject to late charges and processing fees as well as intercept of State and Federal payments and tax refunds.

If you find your loan in default, please contact the Student Loans Office for resolution options at 209.946.2446.
 Ask us about Loan Rehabilitation if you have defaulted on your Private University or Federal Perkins Loan.  

Loan Rehabilitation

Did you know you can rehabilitate a default on a Private University Loan or a Federal Perkins Loan? 

  • Loan rehabilitation requires a written and signed agreement between the University and the borrower to attempt to resolve a defaulted loan. 
  • To rehabilitate a defaulted loan, the borrower must make 9 consecutive on-time payments as determined by the school and per the rehabilitation written agreement.  
  • ​​​​​​​Payments will be due on the 1st of each month. To be considered on time, the payment must be posted by the due date, each month for 9 consecutive months. 

Important: please allow 2-3 business days for payment processing to take place. For further information on loan rehabilitation contact the Student Loans Office 209.946.2446. 

 

Contact Student Loans Department

Phone: 209.946.2446
Fax: 209.946.2653
Email: studentloans@pacific.edu

Location
Finance Center, 1st Floor
3622 Stagg Way
Stockton, CA 9521

Mailing Address
University of the Pacific
Attn: Student Loans 3601 Pacific Ave
Stockton, CA 95211

Office Hours
Monday through Friday from 8:30 a.m.–5 p.m.
Closed 12 p.m.–1 p.m. for lunch
Closed Thursday from 8:30 a.m.–9:30 a.m.