College graduates must avoid default in the payment of their student loans. Delayed payments could mean paying fees that could run up to 16 percent of the amount to be paid.

The default fees shall apply right after payment is due and the borrower paid to pay as mandated in the revised policy on student loans. During the Obama administration, agencies from which student loans were owed were warned against collecting exorbitant fees. Those who can pay within 60 days of the due date were not penalized. Borrowers who were not able to pay after 60 days had to pay fees but at a minimal amount, the Register Guard reported.

However, the new administration revised this policy. Presently, borrowers who fail to make payment on the due date will have to pay extra fees for penalty. This move is foreseen to bury deeper into debt 3,000 Americans who had availed of student loan but could not pay. Some of them had not finished their studies and had never found a job.

Students who are already working but still refuse to pay their students loans may find themselves in difficult situation. The government can directly ask the company where they work to deduct the amount payable from their salaries. This is called wage garnishment. Or the government can get all the tax refunds that an employee who had a student loan is entitled to.

Student loans had been extended to college students to help them graduate on the condition that they have to pay back the amount after graduation. However, many students who already finished college failed to meet their obligations. As a result, unpaid student loans had reached more than trillion already, the Market Watch reported.

Default fees do not apply to borrowers under the Federal Direct Loan program. Those who got their loan from banks and other financial agencies should pay their monthly due on time to avoid pemalties.