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If you miss a student loan payment, you'll be penalized for it. Missing a student loan payment affects your credit and can cause you to rack up late fees. If you fail to catch up, you could also face wage garnishment and even tax refund garnishment if 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.
Consequences of missing federal student loan payments
If your federal student loan payments are past due, here’s what you can expect to happen and when:
- Delinquency status after one day. Your loan will officially be considered delinquent a day after you miss your loan payment. It will keep that status until you pay the past due amount or take action with your servicer, such as by changing your payment plan.
- Late fees after 30 days. All federal student loans issued after 2010 are part of the Federal Direct Loan program, which means that they do not incur late fees. However, if you still have a commercially held loan from the Federal Family Education Loan Program (FFELP), your servicer may charge a late payment fee of up to 6% of your missed payment amount. For example, every time you skip a $300 payment, you could be hit with an $18 fee.
- Credit damage 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 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.
- Loan default after 270 days. Your federal student loans will eventually enter default. This triggers potential new penalties, like collection costs, wage garnishment and tax refund seizure.
Consequences of missing private student loan payments
Private loans have many of the same consequences for missed payments, but they’re not standardized like federal loans. Here are some differences in the consequences you might see after a missed private student loan payment:
- You could see higher late fees. A private lender’s late fee could be a percentage of your payment or a flat fee, like $25.
Your credit can be damaged after just 30 days. Private lenders may report late payments after 30 days, damaging your credit faster than with a federal loan. - Your loan might default after just 90 days. Your lender can often place your loan in default after only 90 to 120 days.
- You could be sued over your debt. Private lenders can’t take your tax refunds to collect on defaulted student loans, but they can sue you to gain additional collection power, such as garnishing your wages, instead.
How to avoid late student loan payments
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 avoid future late payments 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.
🤓 Nerdy Tip
If this was your first time missing payments, contact your lender and ask to waive any late fees. They may give you a break, especially if you enroll in autopay or have another plan to avoid additional late student loan payments. 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.
Deferment or forbearance is not a guaranteed benefit like with federal loans, but you can call your lender and explain your financial challenges. They might be able to make accommodations for you.
If you can’t afford payments long-term
Best option: Sign up for income-driven repayment.
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 other helpful plans might be available instead. For example, some private lenders might allow you to make interest-only payments for a period of time. Contact your lender to ask what options are available.
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