Missing a federal student loan payment sets off a clock. Here's exactly what happens at each stage — from the first missed payment to wage garnishment and Social Security offsets — and how to get back out.
The day after a missed due date, your loan is "delinquent." A late fee may apply, and your servicer will start reaching out. Nothing is reported to credit bureaus yet, and you can still bring the loan current.
Once you're about 90 days past due, the servicer reports the missed payments to the three national credit bureaus. Your credit score can drop sharply. This is the point many borrowers first feel the consequences.
After roughly 270 days (about nine months) of non-payment, a federal student loan is considered in default. This is an administrative status — no court is involved — but it unlocks the government's collection powers.
At about 360 days, the loan transfers to the U.S. Department of Education's Default Resolution Group. The full balance becomes due at once, collection fees can be added, and involuntary collection tools become available.
The government can order your employer to withhold up to 15% of your disposable pay — no court order required. Federal law protects your income up to $217.50 per week.
Estimate your garnishment →Through the Treasury Offset Program, your federal (and often state) tax refund can be intercepted and applied to the defaulted balance before it ever reaches you.
See if your refund is at risk →For retirees and SSDI recipients, up to 15% of monthly Social Security can be withheld — though your benefit can't be cut below $750 a month. SSI is fully protected.
Calculate your offset →Make nine on-time, income-based payments across 10 months and your loan exits default — and the default mark is removed from your credit report. It can be used once per loan.
Estimate rehab payments →Roll the defaulted loan into a new Direct Consolidation Loan to exit default faster — though the default stays on your credit history. Best when you need to resolve things quickly.
Compare rehab vs. consolidation →Not sure which path fits your situation? The full recovery guide walks through every option for getting out of default and stopping collections.
Read the recovery guide →For most federal student loans, default happens after about 270 days — roughly nine months — of missed payments. The loan is considered delinquent the day after the first missed payment, but it isn't in default until that nine-month mark.
Around 90 days, your servicer reports the missed payments to the three national credit bureaus, which can significantly lower your credit score. This usually happens well before default.
Yes. Before default, contacting your servicer about deferment, forbearance, or an income-driven repayment plan can pause or lower your payments and keep the loan out of default.
After default, the government can garnish up to 15% of your wages, intercept your tax refund, and withhold part of Social Security benefits — all without going to court.
The two main routes are rehabilitation (nine on-time payments over 10 months, which also clears the default from your credit report) and consolidation (faster, but the default stays on your record). For a full walkthrough, see the recovery guide.