When a student loan payment is past due — even by just one day — it becomes a delinquent payment. For instance, if your student loan payment is due by the 15th of each month, and the 16th arrives and you haven’t paid the amount you owe, you’re generally considered to be delinquent on that loan.
Once you’re late making a payment, a late fee may be assessed, and late payments may impact your credit report.
Read on to learn more about student loan delinquency and the potential consequences, as well as ways to help prevent student loans from becoming delinquent.
Key Points
• Federal student loans are considered delinquent when they’re just one day past due.
• Delinquent student loans can negatively affect your credit score.
• Delinquency gets reported to credit bureaus after 90 days of nonpayment and remains on your report for up to seven years.
• Student loans go into default after 270 days of missed payments.
• Possible consequences of default include wage garnishment and tax refund seizure by the government to collect what’s owed.
How Student Loan Delinquency Impacts Your Credit Score
Late student loan payments can negatively impact a borrower’s credit score. In fact, as of the first quarter of 2025, new student loan delinquencies have reduced borrowers’ credit scores substantially, with amounts ranging from about 100 points to more than 150 points, according to a recent report from the New York Federal Reserve.
How Long Do Delinquent Student Loans Stay on Your Credit Report?
If you are delinquent on your student loans for 90 days or more, your loan servicer will report the delinquency to the national credit bureaus. Delinquent student loans appear on your credit report and they typically remain there for up to seven years.
This can make it harder to get approved for new loans, such as a car loan or mortgage, and credit cards.
Difference Between Delinquency and Default for Student Loans
Your federal student loans are considered delinquent the first day you are late with a payment. They remain delinquent until you pay what you owe or get a deferment or forbearance to temporarily stop your loan payments.
After 270 days, if the loans are still delinquent, they go into student loan default. This means that your loans are now due in full, along with accrued interest and any fees, fines, and penalties.
To collect this amount, the government can garnish up to 15% of your pay, and/or take your tax refund to put towards the debt. They can do the same to your loan cosigner, if you have one. And your loan servicer can even sue you.
Recommended: Student Loan Default Rate
Common Causes of Student Loan Delinquency
There are a number of different causes of student loan delinquency. Some common ones include:
• The pandemic. The Covid-19 payment pause on student loans meant borrowers were not required to make payments for several years. The pause ended in 2023, but then there was an “on-ramp” to help borrowers prepare to restart their payments until October 2024. At that point, late and missing payments were once again reported to the credit bureaus. According to the New York Federal Reserve, the delinquency rate on student loans soon returned to what it was before the pandemic, with approximately 6 million borrowers in delinquency or default.
• Higher burden of student debt. The amount of student loan debt in the U.S. has doubled in the last 16 years, and the average borrower’s student loan balance is currently $38,375. Large amounts of debt can be challenging to repay.
• Accumulating interest. The interest on most student loans accrues daily. When a borrower makes a payment, most of that payment goes toward the interest that has accumulated since the last payment, and whatever is left goes to the principal. This makes it difficult for borrowers to chip away at what they owe, because interest continues to accrue on the loan principal.
• Financial challenges. Financial hardships, such as job loss, a reduction in income, or having a number of other debts to also repay, can lead to student loan delinquency.
• Attendance at for-profit colleges. Students who attend for-profit colleges tend to take on greater student loan debt and have more trouble repaying what they owe. These borrowers are also less likely to get good jobs after graduation and often earn less.
• Not completing a degree. Borrowers who don’t finish school and earn their degrees are more likely to struggle to repay their student loans. That may be because they earn lower wages.
Late Student Loan Payment
Being late with a student loan payment has consequences — even after just one day. Here are some of the potential ramifications you might face.
What Happens If You Miss a Student Loan Payment?
Missing a federal student loan payment makes you delinquent on your loan. After just one day, your loan is considered delinquent, and in 30 days you may be charged late fees, depending on your loan servicer.
After 90 days, the delinquency is reported to the credit bureaus where it goes on your credit reports. After 270 days, your loan goes into default. The loans are then due immediately in full, along with interest and any fees, fines, and penalties. To collect what you owe, the government can garnish 15% of your wages and/or take your tax refund. Your loan servicer may also take you to court.
Federal vs. Private Student Loan Late Payment Policies
In general, federal student loans offer more options for borrowers who are late with their payments. For example, a borrower could choose deferment or forbearance or switch to another payment plan that lowers their monthly payments, such as income-driven repayment plans. Federal student loans might also offer a loan rehabilitation program.
Policies for late payment on private student loans vary by lender, but overall, private lenders tend to have less flexibility and more stringent rules. For example, a private lender might charge you late fees and send your case to collections when you miss payments. Private lenders can also sue borrowers who stop paying their loans.
Options to Get Back on Track After a Late Payment
If you’re late with a federal student loan payment, contact your student loan servicer and let them know that you’re having trouble paying your loan. They may suggest options to help, such as forbearance or deferment. Or you may be able to switch to a different payment plan that could make it easier to repay your loans, such as income-driven repayment.
If you have private student loans, contact your lender immediately to see what they might be able to do to help.
If you simply forgot about the loan payment, make it as soon as you remember. The sooner you get out of delinquency status, the better.
Can You Refinance a Delinquent Student Loan?
It may be possible to refinance a delinquent student loan, depending on the lender. If the delinquency has not yet affected your credit, you may be able to qualify for refinancing. If not, you could ask a creditworthy family member or friend to be your cosigner on the loan, which might help you qualify.
Once a loan goes into default, however, refinancing is much more challenging.
How Refinancing Can Help Prevent Future Delinquency
If you are struggling with high student loan payment, one option that may help you avoid delinquency down the road is refinancing student loans. When you refinance your loans, you exchange them for a new loan from a private lender — ideally with a lower interest rate, which reduces the amount of interest you pay over the life of the loan. Or, you might be able to lower your monthly payments by extending the term of the loan. However, you’ll pay more in interest over the life of the loan with an extended term.
A student loan refinance calculator can help you determine how much you might save to see if refinancing makes sense for you.
Just be aware that if you refinance your federal loans with a private lender, you will forfeit all of your federal benefits, including programs like income-driven repayment plans and deferment.
Recommended: Student Loan Refinancing Guide
How to Avoid Becoming Delinquent on Student Loans
To keep from becoming delinquent on student loans and avoiding possible consequences, here are a few steps you can take.
Setting Up Autopay and Budgeting Tips
Enrolling in autopay means your payments will be automatic so that they are always made on time — without you having to think about them. Plus, federal student loan borrowers get a 0.25% discount on their interest rate when enrolling in autopay. Many private student loan lenders offer a discount for autopay as well.
In addition, create a budget that prioritizes loan payments and stick to it. Pull together all your bills for the month along with your income. Look to see where you can cut back (such as ordering out or eliminating one or two of your streaming subscriptions), and put the money you save toward your loans.
Exploring Deferment, Forbearance, and Income-Driven Repayment Plans
If you’re struggling to make your federal student loan payments, an income-driven repayment plan may help. On these plans, payments are based on a borrower’s discretionary income and family size, and often result in lower payments.
If you’re undergoing financial hardship, perhaps because of a job loss or medical emergency, you can apply for federal student loan deferment, which can postpone payments or reduce them. Borrowers with qualifying loans are not required to pay the interest that accrues.
Another option is forbearance, which also temporarily allows you to reduce or postpone loan payments. However, with forbearance, borrowers are always responsible for paying the interest that accrues.
Refinancing Student Loans with SoFi
When you refinance your student loans, you can combine multiple loans into one loan with one convenient payment. And you may be able to qualify for a lower interest rate, which could help you save money over the life of the loan. SoFi offers loans with flexible loan terms to fit your budget.
FAQ
What is considered a delinquent student loan payment?
A federal student loan is considered delinquent after just one day of missing a payment. After 90 days, the delinquency is reported to the credit bureaus and it goes on your credit report.
How long before a student loan is in default?
After 270 days of student loan delinquency, your loan goes into default. At that point, the consequences can be serious. The loan payments are due immediately in full, along with interest and any fees, fines, and penalties. The government can garnish 15% of your wages or take your tax refund to collect what you owe, and your loan servicer could take you to court.
Can delinquent student loans be removed from your credit report?
Eventually, yes. Typically, a delinquent student loan remains on your credit report for up to seven years.
How can you fix a delinquent student loan?
If your student loan is delinquent, call your loan servicer or lender right away to see what options you might have. For instance, if you’re struggling to afford your monthly payments, you may be able to switch to an income-driven repayment plan, which is based on your discretionary income and family size, and typically lowers your payments. Other possible options include deferment or forbearance to temporarily reduce or postpone your loan payments.
Does a single late student loan payment affect your credit score?
Missing just one federal student loan payment generally shouldn’t affect your credit score as long as you make the missed payment as soon as possible. After 90 days, delinquent federal student loans are reported to the credit bureaus and go on your credit report.
With private student loans, it depends on the policy of the lender. In general, you may have up to 30 days before a missed payment ends up on your credit report.
SoFi Student Loan Refinance SoFi Loan Products
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).
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