A defaulted student loan occurs when a borrower fails to make payments on their student loan according to the terms outlined in the loan agreement, typically after a certain period of missed payments. For federal student loans, default usually happens when payments are about 270 days (roughly nine months) past due. For private student loans, default often occurs after missing three monthly payments or about 90 days, though this can vary by lender

. When a student loan goes into default, the entire loan balance becomes due immediately, and the borrower loses eligibility for deferment, forbearance, and additional federal student aid. The consequences include wage garnishment, withholding of tax refunds and Social Security payments (for federal loans), damage to credit scores for up to seven years, additional fees and collection costs, potential legal action, and even suspension of professional licenses in some states

. Defaulting on a student loan is a serious financial issue that can severely impact a borrower's credit and financial future. There are options to get out of default, such as loan rehabilitation, consolidation, or repayment in full, which can help restore eligibility for federal aid and improve credit standing