[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.fight13.com\/what-happens-when-my-student-loan-defaults#BlogPosting","mainEntityOfPage":"https:\/\/www.fight13.com\/what-happens-when-my-student-loan-defaults","headline":"What Happens When My Student Loan Defaults?","name":"What Happens When My Student Loan Defaults?","description":"When you borrow money to attend school, you\u2019ll need to pay it back, with interest. But what happens when you can\u2019t make your monthly payments? After a certain amount of time, your loan will go into default, which can carry heavy consequences. To help you better understand why you should...","datePublished":"2017-11-24","dateModified":"2025-09-19","author":{"@type":"Person","@id":"https:\/\/www.fight13.com\/attorneys\/matis-h-abarbanel#Person","name":"Matis Abarbanel","url":"https:\/\/www.fight13.com\/attorneys\/matis-h-abarbanel","identifier":55,"image":{"@type":"ImageObject","@id":"https:\/\/www.fight13.com\/wp-content\/uploads\/2025\/09\/matis-abarbanel_avatar-96x96.png","url":"https:\/\/www.fight13.com\/wp-content\/uploads\/2025\/09\/matis-abarbanel_avatar-96x96.png","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Loan Lawyers, LLC","logo":{"@type":"ImageObject","@id":"https:\/\/www.fight13.com\/wp-content\/uploads\/2020\/03\/icon-logo.png","url":"https:\/\/www.fight13.com\/wp-content\/uploads\/2020\/03\/icon-logo.png","width":600,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.fight13.com\/wp-content\/uploads\/2020\/03\/beach.jpg","url":"https:\/\/www.fight13.com\/wp-content\/uploads\/2020\/03\/beach.jpg","height":544,"width":800},"url":"https:\/\/www.fight13.com\/what-happens-when-my-student-loan-defaults","about":["Student Loans"],"wordCount":532,"keywords":["debt relief","student loans"],"articleBody":"When you borrow money to attend school, you\u2019ll need to pay it back, with interest. But what happens when you can\u2019t make your monthly payments? After a certain amount of time, your loan will go into default, which can carry heavy consequences. To help you better understand why you should avoid this at all costs, let\u2019s take a closer look at what going into default means for your financial standing.When is My Loan in Default?When you don\u2019t make your student loan payments, your loan will be considered delinquent. When you don\u2019t make a payment on your student loan and are delinquent for 290 days (roughly about nine months), your account can be placed in default, which is far more severe. \u201cDefault\u201d is essentially the point where your creditor determines that you aren\u2019t going to pay back your loan, and therefore that they should move to collect it in whatever legal way possible. Defaulting on a loan can lead to serious damage to your credit score and possibly even collection lawsuits and methods being used against you.Consequences of DefaultIf your loan is placed into default, the first thing that will happen is your lender will immediately make any outstanding balance due in its entirety through a process known as \u201cacceleration.\u201d When this happens, you\u2019ll lose a lot of your rights, such as the ability to pursue a forbearance, deferment, or the ability to change your repayment plan.At this point, your creditor will report your loan being in default to the three major credit bureaus, which will damage your credit rating significantly, and then file a lawsuit against you to try to obtain the ability to use other debt collection methods. If this lawsuit goes in favor of your lender, they may gain the ability to withhold your tax refunds or federal payment benefits, garnish your wages, place or even place a lien on your bank account, all to apply collected funds towards your outstanding balance. Perhaps the worst part: your educational institution may choose to withhold your transcripts until your loan has been satisfied.Don\u2019t settle for accepting these consequences without standing up for your rights as a consumer. Get help from the Fort Lauderdale student loan attorneys at Loan Lawyers today! Dial 954-523-HELP (4357) to schedule your free initial consultation.About the AuthorLatest PostsMatis AbarbanelMatis Abarbanel is the founding partner and senior attorney at Loan Lawyers in South Florida. He focuses his practice on consumer rights, helping homeowners navigate issues such as foreclosure and financial hardship. Matis also brings a wealth of experience from his previous work in personal injury law. As a devout Chasidic Jew, he is committed to making a positive impact in his community and dedicates his efforts to charitable initiatives through his non-profit organization, The Center, which aids at-risk Jewish youth. Matis actively serves clients across South Florida and is passionate about empowering individuals to secure their rights and achieve a better future.When Foreclosure Errors by Lenders Lead to Legal Remedies for Homeowners in Fort LauderdaleWhat Homeowners Can Do When Loan Documents Contain Forged or Altered SignaturesUnderstanding Florida\u2019s Debt Forgiveness Programs and IRS Rules"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"What Happens When My Student Loan Defaults?","item":"https:\/\/www.fight13.com\/what-happens-when-my-student-loan-defaults#breadcrumbitem"}]}]