Skipping a student loan payment can have serious financial consequences. Loans become “delinquent” the day after a missed payment, potentially damaging your credit score. If left unpaid for 270 days, the loan enters default, leading to legal action or federal intervention.
To avoid penalties, borrowers struggling to make payments should contact their loan servicer. Options like deferment and forbearance can temporarily pause payments, with deferment preventing interest accrual on most federal loans.
While federal loans offer flexible repayment plans, private loans often impose stricter penalties, including late fees and interest rate hikes. Understanding repayment options can help borrowers avoid financial hardship and long-term credit damage.
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