Missing a student loan payment is the start of a very slippery slope; one with financial repercussions that can last for several years, if not longer. Defaulting on a student loan is what happens when you miss several payments—about 9 months’ worth if they are federal student loans. Once your student loans reach this defaulted status, what happens?
Possible penalties of federal student loan default:
The penalties for student loan default are serious and can have lasting effects on your finances and your ability to provide for yourself. It is important to take action when you have defaulted on your loans. While making payments may be difficult there are things you can do to resolve your outstanding balance and re-enter a more affordable repayment agreement. Contact us if you are close to defaulting on your student loans or have already reached this point.