Delinquency and Default

Delinquency is when a borrower becomes delinquent on the first day after a missed payment. The borrower stays in this status until the past due balance is paid. After 90 days, the loan servicer will report the delinquency to the three major credit bureaus, which will impact the borrower’s credit score negatively.

Default is when a borrower under the Direct Loan Program fails to make scheduled payments for at least 270 days (9 months). Consequences of default include acceleration: when the total unpaid balance and interest becomes immediately due. You may also lose eligibility for deferment or forbearance and future federal student aid. Lastly, your credit will be negatively affected.