After 270 days, your delinquent loan goes into default. When you default on a loan, here’s what happens:

• You can lose your access to more student aid. • The default status will damage your credit score. • The government can take – your tax refund, – part of your Social Security benefits, or – up to 15% of your paycheck.

As you can see, becoming delinquent or defaulting on your federal student loans can wreak havoc on your finances. Use the tips in this article and, most importantly, stay in contact with your student loan servicer to avoid falling behind on repayment.


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