What Happens When Student Loans Go Into Default?

Missing payments on federal student loans can trigger serious consequences.

After 270 days of nonpayment, loans enter default status — which can lead to:

• Wage garnishment

• Tax refund seizure

• Social Security offsets

• Damaged credit

• Collection fees

In this episode, we explain what default means and how to protect your income before enforcement begins.

What You’ll Learn

• When a loan officially enters default

• How wage garnishment works

• How much can be withheld

• How default affects your credit

• What the Fresh Start program offered

• How to exit default through rehabilitation

• When consolidation may help

• How Income-Driven Repayment (IDR) can prevent future default

Wh ...