How do I know if my student loans are in default?

By Anna Baluch | Published on October 21, 2025

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Life can get busy and making your student loan payments may not be top of mind every day. For this reason, it’s not uncommon for some borrowers to miss a payment or two and never realize their student loans are in default.

Since defaulting on your student loans can lead to serious consequences, it’s important to familiarize yourself with what it actually means to default and how to determine whether you’re in this situation.

Definition and signs of student loan default

When you default on your student loan, you fail to repay it according to the terms outlined in your loan agreement. With federal student loans, your loan will likely be considered in default when you haven’t made your payments for 270 days. Perkins Loans are an exception to this rule as they may be in default after you miss one payment.

If you have private student loans, your lender will determine what constitutes a default. Typically, however, you’ll be in default once you miss three monthly payments or your payments are past due for 90 days. Here are a few telltale signs that may indicate your student loans are in default:

• You lose access to loan benefits: If your federal student loans are in default, you won’t be able to apply for income-driven repayment plans*, deferment, or forbearance.

• Your wages get garnished: Your student loan payments may get deducted from your paycheck before it even hits your bank account.

• Your loans get sent to collections: If your loans are with a collections agency, you’ll likely receive letters and phone calls from debt collectors.

• You’re taken to court: Your lender might decide to sue you to try to get their money back.

*As a result of ongoing court actions, the terms of some Income-Driven Repayment (IDR) plans, including the SAVE plan, may be subject to change. Please refer to studentaid.gov for the current status of these plans.

How to check your federal or private loan status

If your student loans are past due, you can expect your student loan company to inform you. They may do so through a notice in the mail, a phone call, or an email with information about your late payment.

Also, when your student loans are in default, they’ll be added to your credit reports. That’s why it’s a good idea to sign up for free regular credit reports from AnnualCreditReport.com. Another option is to log into the Federal Student Aid website or private student loan online portal to determine the status of your loans, including details on past-due payments, delinquent student loans, or defaulted amounts.

What happens if you’re in default

A student loan default may result in a number of consequences that can impact your finances and mental health. If you have federal student loans, you may miss out on federal benefits, such as repayment plans and forgiveness.

Regardless of if you have federal or private student loans, your credit score will also take a hit, making it difficult to take out other loans in the future. Additionally, your loan company may try to sue you in order to collect the debt.

Unfortunately, interest doesn’t stop when your student loans are in default mode. Interest and late fees will continue to accrue, potentially causing even more stress and financial strain.

Steps to get back on track

While defaulting on your student loans can be stressful, there are ways to turn the situation around. Here are a few solutions to consider:

Leverage federal loan rehabilitation and consolidation

If your federal loans are in default, rehabilitation and consolidation are often the ideal paths to recovery. With rehabilitation, you make nine on-time payments in a 10-month period. Once you do, default status can be removed from your loans.

Federal student loan consolidation is when you combine your federal loans into a new loan. This strategy can lower your monthly payments, extend your repayment terms, and streamline the payoff process.

Explore options with your lender

To recover from a private student loan default, you might want to reach out to the lender directly, explain your situation, and learn about your options. Depending on the lender, you may be able to modify your loan through a lower interest rate or smaller monthly payments. You might also qualify for deferment or forbearance, especially if you meet certain criteria like losing a job. While there’s no guarantee your lender will help you out, it doesn’t hurt to ask.

Consider income-driven repayment plans (IDRs)

If your federal student loans are out of default, IDRs can help you stay on track and avoid falling behind again. These plans cap your monthly payments at a percentage of your income and family size—often making them far more affordable than standard plans.

Offered by the U.S. Department of Education, IDRs use your income to determine your monthly payment so that it becomes more manageable month to month. Since there are four types of IDRs available, be sure to educate yourself on your options and determine which one makes the most sense for your unique needs.

Note: IDRs are not available for private student loans. If you have private loans, ask your lender about modified repayment options or hardship plans.

Look into refinancing

Refinancing isn’t usually an option when your loans are in default, but once you’ve resolved your loans and rebuilt your credit, it may become an option to reduce your interest rate or monthly payments. Through a refinance, you combine all your student loans into a single loan, often with a lower interest rate and/or more affordable monthly payments.

By refinancing your student loans with Earnest, you won’t have to worry about any fees, including application, origination, prepayment, and late fees. Plus, you can also choose between variable or fixed-rates and refinance multiple times so that you can continue to meet your financial goals as your circumstances change.

Once you're back on track, refinancing may help you save. When you're ready, check your rate in under 2 minutes—without impact to your credit.

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About the Author

Anna Baluch

Anna Baluch is a freelance finance writer from Cleveland, OH. She enjoys writing content that helps people from all walks of life make good financial decisions. Her areas of expertise include student loans, refinancing, mortgages, personal loans, budgeting, and debt management.

Disclaimer

This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice.

1 Please note that you will lose benefits associated with your underlying federal loans, such as federal Income-driven Repayment Plans, Economic Hardship Deferment, Public Service Loan Forgiveness, or other deferment and forbearance options, if you refinance into a private loan. If you file for bankruptcy, you may still be required to pay back this loan.

2 Choosing to refinance to a longer term may lower your monthly payment, but increase the amount of interest you may pay. Choosing to refinance to a shorter term may increase your monthly payment, but lower the amount of interest you may pay. Review your loan documentation for the total cost of your refinanced loan.

3 You may be able to refinance your Earnest Student Loan Refinance again. To be eligible, the loan must have been disbursed more than 30 days ago, it must not be past due, and you must not be enrolled in a hardship or bankruptcy forbearance, skip a pay or any interest only repayment program. Keep in mind that a hard credit check will be required each time you refinance, which may impact your credit.