Default

The article may contain affiliate links from partners. The words, opinions, and reviews are our own. Learn how we make money to support our financial wellness mission.

Default is the failure to repay a loan according to the terms agreed to in the promissory note.

For most federal student loans, you will default if you have not made a payment in more than 270 days. You may experience serious legal consequences if you default. Failure of a borrower to repay a student loan according to the terms agreed upon when the promissory note was signed. When a borrower defaults, the school, loan holder, state government, and federal government can take action to recover the money. Defaults are reported to national credit bureaus and might affect a borrower’s ability to get credit in the future.

Main Menu