The outstanding balance is an extension of credit and, as such, constitutes a Qualified Education Loan under section 523(a) (8) of the U.S. Bankruptcy Code, which is not dischargeable in bankruptcy. If the entire outstanding balance cannot be paid in full, there is an option of creating a payment plan. Late fees not to exceed the maximum amount allowed by applicable law may be incurred if the account is delinquent. The account will incur late fees until the account is paid in full. If a deferment on payments is required, a deferment for no more than two (2) months in any calendar year may be requested. In the event of a default, the student and/or parents or legal guardian promises to pay any late fees incurred and collection costs, including attorney and/or collection agency fees. Default is defined as an account that is more than 90 days (three monthly payments) past due. Any returned checks may incur a return check fee (see your Enrollment Agreement for more detail).