Avoid Default

Paying your student loans consistently and on time is extremely important. If you are having trouble making paymentscontact us immediately and we’ll help you work out a plan before your NMSL is delinquent.

What is delinquent?

  • If you don’t pay your loans on time they are considered delinquent. Your are delinquent even if you are only 1 day late on a payment.
  • If you only miss one monthly payment and then start repaying, your loan will remain delinquent until you pay the past due amount or you change repayment plans.
  • After 60 days of delinquency it is reported to the national credit bureaus and this will lower your credit score and have serious financial impacts.

What to do if your loan is in default?

If your loan is in default, there are options to get out of default and avoid future consequences. The easiest way to get out of default is to pay off the loan in full but this is not an option for most people. Other options to get out of default are loan rehabilitation and consolidation. Learn more about how to get out of default. 


What is default?

After a period of delinquency on your student loan, it will default. The period of time varies on the type of loan but many federal loans go into default after 270 days of delinquency (8 months)

Top 10 consequences of student loan default


Defaulted student loans will destroy your credit for many years and make it difficult to establish good credit.


You could have difficulty getting approved for a credit card, car loan or home mortgage.


You may also have problems getting a cell phone plan, renting an apartment, or signing up for utilities.


Your income can be garnished.


Part or all of your state and/or federal tax refund may be intercepted.


You will lose eligibility for any additional federal student financial aid.


Deferment and forbearance will no longer be available to you.


You might have a lawsuit brought against you which could result in additional court costs and fees and a lien might be placed on your property.


You could be taken to court by your lender and be charged additional court costs, attorney’s fees and other collection fees.


You may not qualify for certain jobs that require an employee background credit check.

Beware of Student Loan Default Scams

Unfortunately, many companies that offer student loan default relief are just trying to make money off people. 

You should never pay for help with a student loan default, we will help you for free.

Learn more about loan deferment scams