Defaulting can lead to:
Credit damage
Wage garnishment
Loss of access to repayment programs
Legal action
If you're in default, you’re not eligible for income-driven repayment—but get back on track with these three options.
When Does a Loan Go Into Default?
It depends on the type of federal loan:
Direct Loans or FFEL Loans: You're in default after 270 days of non-payment.
Perkins Loans: The loan can go into default immediately after a missed due date, depending on the loan holder.
⚠️ Consequences of Default
Defaulting on your student loan can trigger a chain reaction that affects your finances, job, and future access to aid:
Full balance due immediately (this is called “acceleration”)
Wage garnishment — your paycheck could be docked
Tax refunds and benefits withheld (Treasury offset)
No more deferment, forbearance, or new federal aid
Your credit score will take a hit
You may be sued and charged court costs, legal fees, and collection fees
You could lose access to transcripts from your school
And fixing your credit afterward? It could take years.
🛠 If You’re in Default, Act Fast
If you’ve defaulted, don’t ignore it. Contact the organization that notified you right away. The sooner you act, the more options you may have to resolve it—learn more about what you can do next here.
Not sure what to do next? Relief is here to help guide you. Reach out to us!