What happens when you miss a student loan payment?

Whether it is because you are juggling too many bills, your budget is stretched thin or you simply overlooked the due date, you have missed a student loan payment. What happens next?

The unfortunate — though perhaps unsurprising — reality is that missing a student loan payment does carry consequences, ranging from late fees and credit damage to collections calls and even wage garnishment. How severe the consequences get, however, depends on how long the debt remains outstanding, which is why prompt action in this situation is essential.

What happens if you do not pay your federal student loans?

The distinction of a missed federal student loan is important to note here, because “what happens to you ultimately depends on the type of student loan you have: federal or private,” said Ramsey Solutions, a personal finance website.

Just one day after you miss a payment, your federal loan is considered delinquent. Late fees do not kick in until 30 days after a missed payment, though it is important to note that “all federal student loans issued after 2010 are part of the Federal Direct Loan program, which means that they do not incur late fees,” said NerdWallet.

If 90 days have passed and you still have not made any payment, then the servicer will usually report that to credit bureaus, which will then add it to your credit report, where it will remain for seven years. “This can lower a credit score by over 150 points, according to a 2025 report by the New York Fed — making it harder for you to open a credit card, rent an apartment or even get a cell phone plan,” said NerdWallet.

After that, if non-payment continues for 270 days, your loans will enter default. This carries even more serious consequences, potentially including wage garnishment.

How do the consequences of missed payments differ for private loans?

The biggest difference is that “private lenders usually give you less leeway than the federal government when you miss student loan payments,” said SoFi. Unlike with federal loans, when there is a standard timeline with defined consequences, individual lenders get to determine their own policies.

As a result, “you could see higher late fees” and credit damage “after just 30 days,” and “your loan might default after just 90 days,” said NerdWallet. Additionally, private lenders can sue you for the money you owe.

How can you avoid missing student loan payments?

Digging yourself out of the hole that missing a student loan can create is not an easy task. You are better off avoiding the scenario in the first place, which you can do by:

• Setting up autopay, if you have a tendency to forget your payment due date.
• Looking for ways to lower your student loan payments, if the amount is what is causing you to risk missing a payment.
• Talking to your lender, if you have hit a personal or financial roadblock that is temporarily preventing you from being able to pay.