If you default on student loans, the lender can treat the full loan as due, report the default to credit bureaus, and start collection actions. For federal loans, you can also face wage garnishment, tax refund offsets, and loss of eligibility for additional federal student aid.

What default usually means

For most federal student loans, default happens after 270 days of missed payments, or about nine months. Once that happens, the loan can move into collections and extra fees or costs may be added.

Common consequences

  • Your credit score can drop because the default is reported.
  • Your wages can be garnished without a court order for federal loans.
  • Your tax refund or even some federal benefits can be taken to repay the debt.
  • You may lose access to more federal student aid if you want to go back to school.
  • The full balance, plus interest and fees, may become immediately due.

Federal vs. private loans

Federal loan defaults usually bring collection powers like wage garnishment and tax offset. Private loan defaults can also lead to collections, credit damage, and sometimes lawsuits, depending on the lender and state law.

What to do quickly

  1. Contact your loan servicer as soon as possible.
  2. Ask about deferment, forbearance, or an income-driven repayment plan if you still qualify.
  3. If the loan is already in default, ask about rehabilitation or consolidation options for federal loans.

If you want, I can also give you a simple “what happens next” timeline for federal student loan default.