Is is required by law that a loan granting agency contact you before
they place a grant into default?  Is the grantee entitled to a
pre-default letter before a loan goes into default?

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Clarification of Question by milhouse1-ga on 18 Aug 2004 17:43 PDT

The granting agency did not maintain records of my address, and had on
file at the time of the default an address that was no 10 years old
even though they had previous sent coreespndence to the correct
address regarding the approval of a deferment. I understand by federal
law that a granting agency must make an attempt to contact you with a
warning before they place an account into default.

Is the granting agency a governmental agency (in which case due
process would require notice [e.g. a "pre-default" letter] and an
opportunity for you to contest the issue) or private (in which case
the terms of your Loan Agreement would  govern)?

The organization was a state subsidized Stafford and PLUS loan (State
of Pennsylvania).

You're entitled to due process of law.  I wouldn't be surprised if the
agencies that administer the loans  will give you all the info 
themselves.  If not, try a Legal Aid agency.  If that doesn't work,
post again here and we'll take it from there.