Default

Default is the failure to repay a loan according to the terms agreed to in the promissory note.

For most federal student loans, you will default if you have not made a payment in more than 270 days. You may experience serious legal consequences if you default. Failure of a borrower to repay a student loan according to the terms agreed upon when the promissory note was signed. When a borrower defaults, the school, loan holder, state government, and federal government can take action to recover the money. Defaults are reported to national credit bureaus and might affect a borrower’s ability to get credit in the future.