Common use of Obligation to Repay Student Loans Clause in Contracts

Obligation to Repay Student Loans. I (the student) understand that if I am eligible for a loan guaranteed by the federal or state government and I default on the loan, both of the following may occur: 1) The federal or state government or a loan guarantee agency may take action against me, including applying any income tax refund to which I am entitled to reduce the balance owed on the loan; and 2) I may not be eligible for any other federal student financial aid at another institution or other government assistance until the loan is repaid. In addition, I understand that if I default on any financial assistance I receive directly from CMS or a third-party, I may be subject to collection activity and financial penalties. Student Initials