What happens if students don pay back their loans?
• A. Students Direct Loans will become delinquent and will eventually go into default. Student loans are reported to major credit bureaus when they are 90 days late making payments. Default occurs when they are 180 days late making a payment. The consequences of default are serious and can include a damaged credit rating, loss of eligibility for further federal student aid, withholding of wages and tax refunds, and legal actions (such as lawsuits) being taken against any students.
