What Happens If You Don’t Pay Student Loans?
If you’re one of the many millions of graduates saddled with debt, it’s understandable that you have some anxiety about paying off your loans.
You may even start to wonder what happens if you don’t pay student loans at all?
You’re certainly not alone.
According to the U.S. News’s annual survey, college graduates from the class of 2020 who took out student loans borrowed $37,584 on average.
What Happens If You Don’t Pay Student Loans for 90 Days?
You are considered “delinquent,” and it will be reported to all 3 major credit bureaus.
What Happens If You Don’t Pay Student Loans for 270 Days?
After 270 days you are now in “default” and that’s when it gets hairy.
While that may not sound too terrible, it will certainly get worse. Particularly if you have a federal loan. Once the federal government finally gets involved, they are not gonna mess around.
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