Elon University Sues Former Student Over Loan Default

Elon University (NC) is suing a former student in Alamance County Superior Court over $18,365 in federal loans, interest, penalties and fees.  The federal Perkins Loan Program was geared to graduate and undergraduate students with “exceptional financial need.” When students default on those loans, it first falls to the schools to collect, according to student loan help site Perkinsloan.net, because the schools are the lenders, though the federal government provides a pool of funds that the schools add to and then distribute to students.