Defaulting on Student Loans

Defaulting on your student loans can have serious consequences. When you default on your student loans, it means that you have failed to make payments on your loan as scheduled. In most cases, you are considered to be in default after you have not made a payment for 270 days.

Consequences of Defaulting

Defaulting on your student loans can negatively impact your credit score, making it harder for you to get approved for credit cards, loans, or even an apartment lease. Your wages could also be garnished, which means that a portion of your paycheck could be taken to pay off your student loan debt. Additionally, you may be ineligible for future financial aid.

Options Available

There are a few options available to you if you are struggling to make your student loan payments. You may be able to:

• Defer or forbear your loans, which means that you can temporarily pause or reduce your payments.
• Switch to an income-driven repayment plan, which adjusts your payments based on your income, making them more manageable.

It's important to contact your loan servicer as soon as possible if you are having trouble making payments, as they can work with you to find a solution that works for your situation.

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