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What Happens If You Miss a Student Loan Payment?
A missed student loan payment results in late fees and eventually your loan will default.
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Updated · 1 min read
How is this page expert verified?
NerdWallet's content is fact-checked for accuracy, timeliness and relevance. It undergoes a thorough review process involving writers and editors to ensure the information is as clear and complete as possible.
Ryan Lane is an editor on NerdWallet’s small-business team. He joined NerdWallet in 2019 as a student loans writer, serving as an authority on that topic after spending more than a decade at student loan guarantor American Student Assistance. In that role, Ryan co-authored the Student Loan Ranger blog in partnership with U.S. News & World Report, as well as wrote and edited content about education financing and financial literacy for multiple online properties, e-courses and more. Ryan also previously oversaw the production of life science journals as a managing editor for publisher Cell Press. Ryan is located in Rochester, New York.
Des Toups was a lead assigning editor who supported the student loans and auto loans teams. He had decades of experience in personal finance journalism, exploring everything from car insurance to bankruptcy to couponing to side hustles.
If you miss a student loan payment, you're penalized for it. Credit damage and late fees are the main consequences of missed payments, but if you fail to catch up, wage garnishment and tax refund garnishment can arrive once your loans enter default.
Don’t wait to take action once you’ve fallen behind. Here’s what happens if you miss a student loan payment, as well as the best ways to avoid future late payments.
NerdWallet ratingNerdWallet's ratings are determined by our editorial team. The scoring formula for student loan products takes into account more than 50 data points across multiple categories, including repayment options, customer service, lender transparency, loan eligibility and underwriting criteria.
Credible lets you check with multiple student loan lenders to get rates with no impact to your credit score. Visit their website to take the next steps.
NerdWallet ratingNerdWallet's ratings are determined by our editorial team. The scoring formula for student loan products takes into account more than 50 data points across multiple categories, including repayment options, customer service, lender transparency, loan eligibility and underwriting criteria.
Fixed APR
3.95-10.49%
Actual rate will vary based on your financial profile. Fixed annual percentage rates (APR) range from 4.60% APR to 10.74% APR (4.35% - 10.49% with .25% auto pay discount). Variable annual percentage rates (APR) range from 6.13% APR to 10.74% APR (5.88% - 10.49% with .25% auto pay discount). Earnest variable interest rate student loan refinance loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once a month, but there is no limit on the amount that the rate could increase at one time. Please note, we are not able to offer variable rate loans in AK, IL, MN, NH, OH, TN, and TX. Our lowest rates are only available for our most credit qualified borrowers and require selection of our shortest term offered (5 years) and enrollment in our .25% auto pay discount from a checking or savings account. Enrolling in autopay is not required as a condition for approval.
Variable APR
5.88-10.49%
Actual rate will vary based on your financial profile. Fixed annual percentage rates (APR) range from 4.60% APR to 10.74% APR (4.35% - 10.49% with .25% auto pay discount). Variable annual percentage rates (APR) range from 6.13% APR to 10.74% APR (5.88% - 10.49% with .25% auto pay discount). Earnest variable interest rate student loan refinance loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once a month, but there is no limit on the amount that the rate could increase at one time. Please note, we are not able to offer variable rate loans in AK, IL, MN, NH, OH, TN, and TX. Our lowest rates are only available for our most credit qualified borrowers and require selection of our shortest term offered (5 years) and enrollment in our .25% auto pay discount from a checking or savings account. Enrolling in autopay is not required as a condition for approval.
Credible lets you check with multiple student loan lenders to get rates with no impact to your credit score. Visit their website to take the next steps.
Consequences of missing student loan payments
If your federal student loan payments are past due, here’s what you can expect to happen and when:
After 30 days. Your servicer can begin charging you up to 6% of your missed payment amount as a late fee. For example, every time you skip a $300 payment, you could be hit with an $18 fee.
After 90 days. Your servicer usually will report your late payments to the credit bureaus. Late payments will stay on your credit report for seven years. This can lower a credit score by as much as 100 points — making it harder for you to open a credit card, rent an apartment or even get a cell phone plan.
After 270 days. Your federal student loans will enter default. This triggers potential new penalties, like collection costs, wage garnishment and tax refund seizure.
What happens if I miss a payment on my private student loan?
Private loans have many of the same consequences for missed payments, but they’re not standardized like federal loans. For example, a lender’s late fee could be a percentage of your payment or a flat fee, like $25.
Private lenders may report late payments after 30 days, and default happens sooner for private loans — often after 120 days — further damaging your credit. And while private lenders can’t take your tax refunds to collect on defaulted student loans, they can sue you to gain additional collection power, including garnishing your wages.
Missing one student loan payment isn’t disastrous, but you’ll want to pay the past-due amount before the consequences ramp up. The best way to get back on track will depend on why you fell behind in the first place:
If you forgot your payment due date
Best option: Enroll in autopay with your servicer or lender.
Autopay means the amount you owe will be automatically deducted from your checking account every month. You’ll never have to worry about paying late again, though you should keep an eye on your account balance to avoid potential overdraft penalties.
If you never received a bill
Best option: Confirm your contact info.
You’re responsible for paying your student loans on time — even if you never received a bill with a due date. If this happens, make sure your student loan servicer has up-to-date contact information for you.
Not sure who your servicer is? Log in to your StudentAid.gov account to find out. For private loans, reach out to your lender for assistance.
If you’re having short-term financial trouble
Best option: Pause repayment with deferment or forbearance.
Student loan deferment is the better option, as the government pays the interest on certain federal student loans during your break. You can qualify for deferment only in specific instances, though, like if you’re receiving unemployment benefits or other state or federal assistance.
If you don’t qualify for deferment, you can likely receive student loan forbearance. Forbearance also lets you pause payments, but you have to pay all the interest. Because those costs can add up, it’s best to use forbearance only when you need a quick break.
Income-driven repayment plans cap federal student loan payments at 10% to 20% of your discretionary income. Payments can be as small as $0, and these plans forgive any remaining balance on your loans after 20 to 25 years of payments.
Income-driven plans are rare among private lenders. But some offer other payment plans that let you pay less, like making interest-only payments for a period of time. Contact your lender to ask what options are available.
Contact your lender or servicer once you’ve identified the best solution. If this was your first time missing payments, ask to waive any late fees. They may give you a break, especially if you have a plan to avoid additional late student loan payments.
