What if I Miss a Student Loan Payment?

What if I Miss a Student Loan Payment?

When student loan payments officially start, new college graduates may find themselves unprepared. Missing a student loan payment is extremely common and can happen to almost anyone. Do not panic if this happens to you because a variety of options are often available. You can also reach out to a Chattanooga bankruptcy lawyer if you have concerns related to bankruptcy.


You might be wondering what will happen if you miss a student loan payment. There might not be any life-changing consequences at first other than a reminder to pay. However, continuing to miss payments could lead to student loan default, something that could create multiple challenges.

After the first day of missing a student loan payment, your loan will remain delinquent until the payment is made. There may not be immediate changes or consequences. However, if the delinquency lasts 90 days or longer, then major credit bureaus will be notified that you are not paying the loan. This could hurt a person’s credit score.

A bad credit score impacts multiple financial resources like being able to obtain a credit card, loans, and approval to rent housing. If a payment is still not made on the student loan, then the loan can fall into default. The amount of time that needs to pass for this to happen varies based on the type of loan you have. Some loans, for example, have a limit of 270 days before placing the borrower in default.

The consequences of a defaulted student loan vary widely. Some people might be required to pay the whole loan right away. Others may lose privileges like student loan deferment. One of the worst consequences is how this destroys credit. Bad credit scores from defaulted loans can lead to higher interest rates and less access to financial resources.


Do not give up if you find yourself missing payments. There are student loan payment tips that may help. One of the most effective steps to avoid missing a payment again is to apply for an income-driven repayment plan. The payments due will then depend on monthly income. Some people may not have to pay anything under this plan.

Ways out of default include rehabilitation, paying the loan for nine months, and consolidation, combining all the loans together. There are also ways to handle student loan disputes that may arise during this process. You can contact your student loan servicer to try to find a solution.

Maintaining communication with your student loan servicer about life changes and financial struggles might give you access to more options for loan repayment. The Federal Student Aid Ombudsman Group can also help you resolve these types of disputes.


You might be able to escape your financial situation through bankruptcy. Do not hesitate to contact us at Tom Bible Law by dialing (423) 690-7712 or a consultation about your finances. Our Tennessee bankruptcy attorneys can help you find the best bankruptcy option for you. We can be found in the Tennessee cities of Chattanooga and Tullahoma.