What Happens if I Miss a Student Loan Payment?

Beginning August 1, federal student loan holders who are enrolled in the SAVE Plan will see interest accrue on their student loans, but payments are still suspended. Eligible borrowers can apply for and recertify under the Income-Based Repayment (IBR), Income-Contingent Repayment (ICR), and Pay As You Earn (PAYE) Repayment Plans, as well as Direct Consolidation Loans. Many changes to student loans are expected to take effect July 1, 2026. We will update this page as information becomes available. To learn the latest, go to StudentAid.gov.

Missing student loan payments can have a variety of negative consequences, including damage to your credit score and wage garnishment. If you are struggling to make your payments, don’t risk going into delinquency or default. There are ways to make your monthly student loan payments more affordable.

Here’s what borrowers should know about missing student loan payments plus options to help them pay off their student loans.

What Happens if I Miss a Federal Student Loan Payment?

Missing federal student loan payments typically leads to delinquency. If payments continue to be missed, the loans may go into default, which can result in severe consequences.

What Happens When You Miss a Student Loan Payment

Your federal student loan is delinquent the day after you miss a payment. Even if you start making the next payments, your account will remain delinquent until you make up for the missed payment or receive deferment or forbearance.

Once 90 days pass, your loan servicer will let the major credit reporting agencies know that your loan is delinquent. Your credit score will take a hit, making it more difficult to qualify for good terms on loans or credit cards or to rent an apartment.

If you continue to miss payments, your loan will go into default. Federal student loans go into default after 270 days of missed payments. Defaulting on your student loan has serious consequences. The entire amount you owe on your loan, including interest, becomes due immediately.

In addition, you won’t be able to take out any other student loans, and you’ll no longer qualify for deferment or forbearance. Your credit rating will be damaged, and it will be difficult to get a credit card or qualify for a mortgage or car loan. The government can take your tax refund or federal benefits to pay off your loan. You could have your wages garnished, meaning your employer will take part of your paycheck and send it to the government to be applied toward the loan.

Your loan holder can also take you to court — there’s no statute of limitations. You may be responsible for collection fees, attorney’s fees, and other costs.

In other words, you want to avoid student loan default if you possibly can.

What Happens if I Miss a Private Student Loan Payment?

Private lenders usually give you less leeway than the federal government when you miss student loan payments. Exactly what happens if you miss a private student loan payment depends on the lender’s specific policies and your loan terms. A private lender can tack on late fees and transfer your loan to a debt collection agency, for example.

Also, private lenders can sue you if you stop paying your student loans. If they win, a court can sign a judgment allowing them to garnish your wages. States set the statute of limitations for lawsuits about payment of private loans; the time period usually ranges from three years to a decade. But the lender can continue trying to collect the debt for as long as they want. Plus, certain actions can reset the statute of limitations, such as making a payment or even acknowledging that the debt belongs to you.

Will My Loans Eventually Go Away if I Can’t Pay?

If you stop paying your student loans, they will not simply go away. However, it may be possible to qualify for student loan forgiveness or discharge.

For example, federal student loans can be discharged if you suffer from a total permanent disability or your school closes while you’re attending it or soon after you leave. You can also pursue student loan forgiveness programs, such as Public Service Loan Forgiveness or Teacher Loan Forgiveness.

For federal loans, borrowers may be able to enroll in an income-driven repayment (IDR) plan. These repayment plans aim to make student loan payments more manageable by basing them on the borrower’s discretionary income and family size.

As of August 2025, there are three income-driven repayment plans you can enroll in, but only one of them — the Income-Based Repayment (IBR) Plan — may allow borrowers to have the outstanding balance of their loan canceled after 20 years.

However, the U.S. domestic policy bill that was passed in July 2025 will eliminate a number of student loan repayment plans. For borrowers taking out their first loans on or after July 1, 2026, there will be only two repayment options: the Standard Repayment Plan and the Repayment Assistance Program (RAP).

The Standard Repayment Plan is a refashioned plan that will have fixed payments with a term based on the loan amount and ranging from 10 to 25 years. RAP is similar to previous income-driven plans that tied payments to income level and family size. On RAP, payments range from 1% to 10% of adjusted gross income for up to 30 years. At that point, any remaining debt will be forgiven. If a borrower’s monthly payment doesn’t cover the interest owed, the interest will be cancelled.

What if I’m Experiencing Financial Hardship?

If you are having a tough time financially, don’t just ignore your loans; instead, approach your lender or loan servicer to discuss your options.

For federal loans, an income-driven repayment plan that bases your monthly payments on your discretionary income and family size might help, as noted above. Just keep in mind that repayments plans will be changing significantly in July 2026.

You might also be able to qualify for a deferment or student loan forbearance, allowing you to temporarily stop or reduce payments. If you’re in deferment, depending on the type of loan you have, you may not have to pay the interest that accrues during the deferment period. Some of the reasons you can currently apply for deferment include: you’re in school, in the military, or unemployed. However, as part of the new domestic policy bill, economic hardship and unemployment deferments are being eliminated for student loans made on or after July 1, 2027.

You can apply for student loan forbearance if your federal student loan payments represent 20% or more of your gross monthly income, you’ve lost your job or seen your pay reduced, or you can’t pay because of medical bills, among other things. Interest accrues on your loans while they are in forbearance. As part of the new domestic policy bill, however, forbearance will be capped at nine months in any 24-month period.

Private lenders are not required to offer relief to student loan borrowers facing hardship, but some do. Check with your lender to find out what your options are.

Will I Be Sent to Collections if I Do Not Pay My Student Loans?

It is possible that if your student loan is in default it may be sent to a collections agency. Federal Direct Loans in default are managed by the Department of Education’s Default Resolution Group. The Default Resolution Group oversees collections for all federal student loans that are in default, so the loans are not sent to a private collections agency.

Private student loans may be sent to a collection agency as soon as the loan enters default, which is generally after 90 or 120 days of non-payment, depending on the lender.

What if I Don’t Expect My Situation to Change Anytime Soon?

Deferment, forbearance, and relief offered by private lenders are temporary solutions. If your financial hardship looks like a long-term issue, you’ll need a more permanent fix.

With federal loans, you may be eligible for a payment plan that makes your loan more manageable, such as one of the repayment plans mentioned above.

Private student loans are not eligible for income-driven repayment, and most private lenders don’t offer this option. If you’re struggling to afford your private student loan bills, it’s worth explaining your situation to the lender and seeing if they can work with you on a feasible repayment plan. It’s in their interest to continue collecting even partial payments from you, rather than seeing payments stop altogether and having to go through the trouble of lawsuits or referrals to collection agencies.

Why You May Want to Consider Refinancing

Another potential long-term solution to unaffordable payments is student loan refinancing. With a private lender, you can refinance federal student loans, private loans, or both. Refinancing involves obtaining a new loan to pay off all of your old loans and getting new terms and a new interest rate. Just be aware that if you refinance federal loans, you lose access to federal programs like federal deferment and student loan forgiveness.

Refinancing your student loans could make sense if you qualify for a lower interest rate, which could lower your payments and reduce the amount you spend in interest over the life of the loan. Or, if you choose a longer loan term, you could also lower your monthly payments, which can make the loan more affordable for you now. However, you may pay more interest over the life of the loan if you refinance with an extended term.

The Takeaway

Missing student loan payments can have serious consequences, including delinquency and default, which can damage your credit score and even result in your wages being garnished.

There are options for borrowers who can’t afford their monthly loan payments. These include an income-driven repayment plan, student loan forgiveness, or refinancing to more favorable loan terms, if eligible. Taking steps to manage student loans before missing payments can help a borrower avoid the negative financial ramifications of delinquency and default.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

What happens if I’m late on a student loan payment?

If you are late on a student loan payment even by one day, the loan may be considered delinquent. The loan will remain delinquent until a payment is made or you enter into federal deferment or forbearance.

Does a late payment on a student loan affect credit?

A late payment may have a negative impact on your credit score. Federal loans are normally reported to the credit bureau if they remain delinquent for 90 days. Private student lenders may report a late payment to credit bureaus after 30 days.

What happens if you miss a student loan payment by 270 days?

If you fail to make payments on your federal student loan for 270 days, the student loan will enter into default. Consequences of default are serious. The total balance of the loan becomes due immediately, your wages may be garnished, your tax refund could be withheld, and your credit damaged.

Private student loans may go into default earlier— typically, after 90 or 120 days, depending on the lender.

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