Delinquency and default
Delinquency occurs when you fail to pay all or part of your monthly student loan payment.
- You may be charged late fees for delinquency, which can add to your Total Loan Cost.
- You may lose any interest-rate reduction programs for which you were eligible.
- Late payments may be reported to consumer reporting agencies and can have a negative impact on your credit report.
Default is the most serious—it means you’ve failed to repay your student loan and can have serious consequences.
- Once your student loan is in default, the entire Current Balance becomes due, not just the missed monthly payments.
- Your default may be reported to the consumer reporting agencies, where it can stay on your credit report for up to seven years.
Before your student loan becomes delinquent and goes into default, chat with us or call 800-472-5543. Let’s work together for a solution.