As soon as you fail to make a payment on time, your loan

As soon as you fail to make a payment on time, your loan immediately becomes “delinquent.” After 90 days of not making a payment, loan servicers will report your delinquency to the three major credit bureaus. This can harm your credit, which might mean you have trouble borrowing money to do things like buying a house or car. At the very least, you will pay higher interest rates to other lenders when you demonstrate that you can’t be counted on to make your student loan payments on time.

Your loan will go into default after a total of 270 days have passed since your payment was due (330 days for FFEL Loans that are not paid Big Boss votemonthly).

If you loan goes into default, you are in serious trouble.

To “default” on your loan, means that you failed to make the scheduled payments on your student loan according to the terms of your promissory note (the binding legal document you signed when you made your loan).

If you loan goes into default, you are in serious trouble. In fact, you should always avoid it if at all possible. However, if your loan does go into default, there are steps you can take to “rehabilitate” your loan – all is not lost. Keep reading to find out more about default, how to avoid it, and what you can do to get out of it.o make the scheduled payments on your student loan according to the terms of your promissory note (the binding legal document you signed when you made your loan).

If you loan goes into default, you are in serious trouble. In fact, you should always avoid it if at all possible. However, if your loan does go into default, there are steps you can take to “rehabilitate” your loan – all is not lost. Keep reading to find out more about default, how to avoid it, and what you can do to get out of it.

There are two types of forbearance:

There are two types of forbearance:
Discretionary: Your lender has the right to decide whether to grant you forbearance due to illness or financial hardship.

Mandatory: Your lender is required to grant you forbearance if one or more of the following conditions applies to you:

You are serving in a medical or dental internship or residency program (other specific requirements apply).
Your monthly payment for all your student loans is 20% or more of the borrower’s total monthly gross income (additional conditions apply).
You served in a national service position for which a national service award was received.
You are performing a teaching service that would qualify for Teacher Loan Forgiveness.
You qualify for partial repayment of student loans under the U.S. Department of Defense Student Loan Repayment Program.
You are a member of the National Guard and were activated by a governor, and are ineligible for a military deferment.

If you can’t make all or some of your loan payments

If you can’t make all or some of your loan payments, but you don’t qualify for a deferment, your loan servicer may grant you forbearance. Forbearance can grant a period of up to 12 months in which you are not required to make all or some of your payments. During that period, interest will still accrue on your loans, and if you do not or cannot pay it, the interest will be capitalized (added to the principal of your loan) at the end of your forbearance period.

If one of the following scenarios applies to you, you may qualify for deferment:

If one of the following scenarios applies to you, you may qualify for deferment:

• • You are enrolled at least half-time in college or career school.
  • You are studying in an approved graduate fellowship program or in an approved rehabilitation training program for the disabled.
  • You are experiencing unemployment or an inability to find full-time employment (for up to 3 years).
  • You are experiencing a period of economic hardship including Peace Corps service (for up to 3 years).
  • You have been called to active duty military service during a war, military operation, or national emergency.
  • You have returned home following the conclusion of qualifying active duty military service (for the first 13 months or until you return to enrollment on at least a half-time basis, whichever is earlier), if: