Student loans are considered to be in default when the borrower fails to make payments as agreed in the loan contract, typically after a specific period of non-payment. For federal student loans, default usually occurs after about 270 days (roughly nine months) of missed payments. For private student loans, default can happen sooner, often after 90 to 120 days of non-payment, depending on the loan terms

. Being in default means serious consequences for the borrower, including:

• The entire loan balance may become due immediately.
• The loan holder can take collection actions such as wage garnishment, withholding tax refunds, and even Social Security benefits (for federal loans).
• The borrower's credit score will be significantly damaged, with the default remaining on credit reports for up to seven years.
• Additional fees and interest continue to accrue, increasing the total amount owed.
• The borrower loses eligibility for deferment, forbearance, and additional federal student aid.
• Schools may withhold academic transcripts, and professional licenses can be suspended in some states.
• The borrower may be sued by the lender, leading to further legal and financial consequences

Defaulting on student loans also limits access to repayment plans that tie payments to income and can result in collection fees of up to 25% of the loan balance

. In summary, student loan default means failing to repay the loan as agreed, triggering a range of financial, legal, and credit-related penalties that can severely impact the borrower's financial life and future borrowing ability