Student loan default.

In plain English

Student loan default is what happens when a federal student loan goes unpaid for an extended period (for most federal Direct loans, 270 days, about nine months). At that point the entire unpaid balance can become due at once, collection costs can be added, and the government can use tools like wage garnishment (taking part of your paycheck) and Treasury offset (taking your tax refund or some federal benefits). Default also damages your credit for years. It is serious, but it is not the end of the road: loan rehabilitation and consolidation are real paths back to good standing, and the first step is to contact your servicer or studentaid.gov.

01Why it matters

Default can reach directly into your paycheck and your tax refund, and it blocks you from new federal aid, so getting out of it protects both your income and your ability to go back to school.

02The math, step by step

A loan that has gone unpaid for about 270 days falls into default, and the government can then garnish part of your wages or take your federal tax refund through Treasury offset. There are two main ways out. Rehabilitation: you make nine voluntary, on-time payments (each within 20 days of its due date) over ten consecutive months, set at an affordable amount based on your income, sometimes as low as $5 a month; finish all nine and the default is removed from your credit report. Consolidation: you combine your loans into one new loan to exit default faster, but the default stays on your record. As of June 2026, federal collections on defaulted loans are under a temporary pause announced January 16, 2026, and major repayment changes under the OBBBA take effect July 1, 2026, so confirm current terms at studentaid.gov before you act.

03What this is NOT

04Receipts

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