To default means you failed to make payments on your student loan as scheduled according to the terms of your promissory note.
In general, a federal student loan is placed in default when a borrower doesn't make a payment and has been unreachable or unresponsive to requests for payment for 270-360 days after the first missed payment.
After a borrower misses a payment his/her loan enters a delinquency period. During the delinquency period, the lender must make repeated efforts to locate and contact the borrower about repayment. If the lender is unsuccessful, steps will be taken to place the loan in default.
Graduating, withdrawing or dropping below half-time
Unlike other consumer loans, student loans usually can't be discharged through bankruptcy and will likely stay with borrowers for the rest of their lives.
A borrower with a defaulted loan faces these consequences:
Borrowers who have difficulty making loan payments should contact the lender as soon as possible to see which options are available to them.
Borrowers who try to avoid their lender could lose out on some readily available repayment benefits and options.
The best way to avoid defaulting on your loan is to make payments on time!
Discover steps you can take to repay your federal student loan successfully and avoid going into default.
Don't get discouraged! If you are in default on your federal student loan, there are options for getting out of default, including loan repayment, loan rehabilitation, and loan consolidation.
Find out more about how to get your loan out of default.