A few days ago
Anonymous

Am I in default on my student loan?

I was 22 days past due on my student loan payment, and paid them today. It said something on my account about they could prevent me in the future from not getting any more student loans. Does this mean I went into default?? What is default?

Top 6 Answers
A few days ago
Anonymous

Favorite Answer

Here is the definition of default…

Default

Failure to repay a loan according to the terms agreed to then you signed a promissory note.* For the FFEL and Direct loan programs, default* is more specific—it occurs if you fail to make a payment for 270 days if you repay monthly (or 330 days if your payments are due less frequently). The consequences of default* are severe. Your school, the lender or agency that holds your loan, the state and the federal government may all take action to recover the money, including notifying national credit bureaus of your default.* this may affect your credit rating for as long as seven years. For example, you might find it difficult to borrow money from a bank to buy a car or a house. In addition, the Internal Revenue Service can withhold your U.S. individual income tax refund and apply it to the amount you owe, or the agency holding your loan might ask your employer to deduct payments from your paycheck. Also, you may be liable for loan collection expenses. If you return to school, you’re not entitled to receive additional federal student financial aid. Legal action also might be taken against you. In many cases, default* can be avoided by submitting a request for a deferment, forbearance, discharge or cancellation and by providing the required documentation.

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5 years ago
?
If you have a student loan in default you won’t get a new one. In order to get the loan in default, out…….you will typically have to make 9 consecutive payments. Once you’ve done that, you can apply for a new loan but be prepared to have a co-signer. Loans typically go into default after 9-12 months of not making payments or making arrangements with the lender.
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A few days ago
estudent
It depends on the company you got your loan from. I’m a former student, just graduated in May. The company I’m with ended up calling me about my loan repayment because like you I was overdue. I had just started a lower paying job and couldn’t afford to pay the loan off just yet (did attempt to contact the company but was unsuccessful). I explained to them what had happened and they seemed willing to help out (created an income sensitive repayment plan).

Just because you are late in repayment of a loan, it doesn’t mean you are default. Default, to the best of my knowledge means that you have made any contact with the loan company and have not made any payment for a year or more. Contact your financial aide department/bursars office for any questions. Many loan companies will set up a payment plan you can work with because they want to get paid. If in the future you do want to get more student loans, you’d better contact them right away. Your not default yet, but if you aren’t on top of this, you will be.

Good luck

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A few days ago
JDF
No. You generally do not go into default for a single late payment. Depending on the loan and the company administering it, you could have 60-120 days late (no payment) to go into default. Default is that you haven’t paid and it reflects negatively on your credit. If a federal loan goes into default, the government will withhold any IRS refunds you may be eligible to recieve.
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A few days ago
zaleonia1
This is a tactic to get you to pay. Just for future reference, you have to be almost a year past due for your loan to default and go into collections. Also, in the future, call you lender and let them know you are willing but unable to pay. They can postpone a payment or two for you. They are usually more than willing to do this. If you get some one nasty, ask to speak to their supervisor. Also, call and ask for a copy of your “Rights and Responsibilities”. This explains a lot about your loan and will help you be better informed.
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A few days ago
Anonymous
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