What happens if you miss a student loan payment?

A missed student loan payment can have very serious repercussions. Many of these consequences don’t kick in until you are at least 30, 90, or 120 days on payments — but it’s still important to understand what could happen if you fall behind. : Both federal and private student loan lenders can charge you a fee for being late with payments. For example, you could be charged 6% of the payment amount for making a late payment on your federal Direct Loans.

Entering default can trigger the most serious consequences, including loan acceleration, liens on property, seizure of federal benefits or wages, and court proceedings.When you’re late on a private student loan, the consequences — and the timeline for those consequences — will depend on your lender’s specific policies.

Your late payment will usually be reported to the credit reporting agencies. You may also owe late fees, which can be a flat amount or a percentage of the missed payment . Returned payment fees can also apply if your original payment was rejected due to insufficient funds.You may go into default, which would be reported to the credit reporting agencies and could trigger collections activities, including court action, wage garnishment, and more.

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