What does it mean to default on a student loan?
Generally, this means that you have not paid on your Federally Guaranteed Student Loans for 9 consecutive months. Once the loan is in default, the lender can turn it over to the “guaranty agency” in your state. Lenders may “accelerate” a defaulted loan, which means that the entire balance becomes due in a single payment. Once a loan is declared in default, you are no longer entitled to any deferments or forbearances. In addition, you may not receive any additional Title IV federal student aid until you have made payments of an approved amount for at least six consecutive months.
