Default is a failure to repay a loan as agreed. If you stop paying your student loan, it first becomes delinquent (late). For federal student loans, once the loan is more than 270 days past due it is considered to be in default.

Defaulting on a loan has serious consequences, including exorbitant collections fees, wage garnishment, tax offsets, loss of eligibility for student aid, ineligibility for deferment, loss of subsidized interest benefits, a negative impact on your credit score for up to seven years and other serious legal consequences.

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