If you’re thinking about missing a student loan payment, you might be wondering how long you have before your loans go into default. We’ve got the answer.
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In the United States, student loan debt is the second largest type of debt behind only mortgage debt. As of 2019, there is approximately $1.56 trillion in outstanding student loan debt owed by 45 million Americans.
missing a student loan payment can have serious consequences. Your loans can go into default, which will damage your credit score and make it difficult to get loans in the future. In some cases, you may even be subject to wage garnishment or have your tax refunds seized.
It’s important to know how many days after missing a student loan payment your loans will go into default so you can take action to avoid it. Here’s what you need to know.
What is Default?
Default occurs when you fail to make a required payment on your student loan according to the terms of your promissory note. Your loan is considered delinquent the first day after you miss a payment. You have 270 days to bring your account current. If you do not, your loan will be considered in default. The entire unpaid balance of your loan and any interest is immediately due and payable, and you lose many rights and privileges that were part of your original loan agreement.
The Consequences of Default
Defaulting on your student loans has serious consequences that can last for years. If you default, the entire unpaid balance of your loan and any interest you owe becomes immediately due and your account will be turned over to a collection agency.
Your credit score will be damaged, which will make it hard to get a car loan, buy a house, or get a job. Your wages could be garnished, your tax refunds seized, and you could even end up in lawsuit or jail. In short, defaulting is not an option you should ever consider.
If you’re struggling to make your payments, contact your loan servicer right away to discuss your options. You may be able to qualify for a hardship deferment or forbearance that will allow you to temporarily stop making payments or make smaller payments. There are also income-driven repayment plans that can lower your payments based on your income and family size.
Whatever you do, don’t just stop making payments and hope for the best. The consequences of default are just too severe.
How Many Days After Missing a Payment Does Default Occur?
The short answer is 270 days. If you have not made a payment on your student loans for 270 days, your loans will be in default. This can have serious consequences, including wage garnishment, loss of eligibility for deferment or forbearance, and damage to your credit score. If you are struggling to make your payments, contact your loan servicer as soon as possible to discuss your options.
Steps to Take If You Can’t Afford Your Student Loan Payment
There are a number of things you can do if you can’t afford your student loan payment. The first step is to contact your loan servicer to discuss your options. You may be able to temporarily postpone or reduce your payments. You can also look into consolidating your loans, which could lower your monthly payment. If you’re having trouble making ends meet, you may also want to consider changing your repayment plan.
It’s important to know how many days after missing a student loan payment your loans will go into default. Defaulting on your student loans can have serious consequences, including damage to your credit score and the loss of your eligibility for deferment or forbearance. If you’re having trouble making your student loan payments, contact your loan servicer as soon as possible to discuss your options.