Consolidating a defaulted student loan

A student loan default occurs when you become more than 270 days past due (330 days for FFEL loans) on your student loan payments.

If you didn’t set up automatic payments, recently changed your mailing address, or are simply struggling financially, you can inadvertently miss payments and find yourself getting hit with late fees and falling behind on student loan payments.

For federal student loans the borrower must sign a promissory note prior to the disbursement of funds which is a legally binding agreement between the borrower and the lender.

In this promissory note there would have been clear repayment terms for the money that was being borrowed.

But your situation can only get worse if you are not proactive and explore the options available to you.As a result, many new graduates are falling delinquent or behind on their student loan payments, and some even find themselves defaulting on their student loans.In fact, only 54% of student loan borrowers are actively repaying student loans (​source).Typically the promissory note will discuss payment due dates, interest rates, and remedies if the loans are not paid off as scheduled.If the borrower stops making payments as agreed upon in the promissory note, the lender will put a default status on the loans after 270 days of non-payment.

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