Student loans and your credit

When missed student loan payments are reported, what default means, and the ways back to good standing.

When late payments are reported

Federal student loan servicers generally report a payment as late once it is 90 days past due. Private student loans are often reported at 30 days.

Default

A federal student loan generally goes into default after about 270 days of missed payments. Default can bring collection fees, wage garnishment, and loss of tax refunds, and it is reported as a serious negative.

Getting back on track

Loan rehabilitation (usually nine on-time payments in ten months) removes the default notation from your report, although earlier late payments stay. Consolidation can also end a default. Income-driven repayment can lower payments.

Check your report

Make sure each loan appears once, balances are current, and loans you consolidated or paid show as closed with a $0 balance.