If student loans are in default, it means the borrower has failed to make payments according to the terms agreed upon in the loan contract (promissory note). For federal student loans, default typically occurs after about 270 days (nine months) of missed payments without arrangements such as deferment or forbearance. For private student loans, default can happen sooner, often after 90 to 120 days of missed payments, depending on the loan agreement

. When a student loan is in default, serious consequences follow:

• The loan balance may become due in full immediately.
• The borrower may lose eligibility for deferment, forbearance, or additional federal financial aid.
• The loan may be sent to collections, which can add collection fees.
• The borrower's wages can be garnished without a court order.
• Federal and state tax refunds and Social Security benefits can be withheld to repay the loan.
• The default will be reported to credit bureaus, damaging the borrower's credit score for up to seven years.
• The borrower may face lawsuits and additional legal costs.
• Other impacts include difficulty obtaining new credit, possible denial of professional license renewals, and ineligibility for certain federal benefits or military enlistment

Default reflects a failure to repay student loans as agreed and can severely impact a borrower's financial situation and creditworthiness. Borrowers are encouraged to contact their loan servicer promptly if they are behind on payments to explore options like income-driven repayment plans, deferment, forbearance, or rehabilitation programs to avoid default or to recover from it