Behind on student loan payments? Act now as 5 million summer defaults loom
If you’re among the millions of borrowers who haven’t made full, on-time federal student loan payments after the on-ramp period ended Sept. 30, 2024, take action now. Otherwise, your loans may default in July or August.
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Once a borrower’s payments are 270 days past due, their student loans default. That status can bring serious consequences, including wage garnishment, damaged credit and lost access to affordable repayment plans.
Nearly 5.6 million borrowers were between 91 and 180 days behind on their payments as of March 31, per Department of Education data. That means they’re at immediate risk of defaulting this summer. These are borrowers who were in good standing before the pandemic but who haven’t gotten back on track since payments resumed.
Stacked containers are seen at the Yangluo Port on the Yangtze River in Wuhan, central China’s Hubei Province, Friday, May 23, 2025. (AP Photo/Andy Wong)
Trucks loaded with container move through a container terminal port in Shanghai, China Monday, June 9, 2025. (Chinatopix Via AP)
Trucks loaded with container move through a container terminal port in Shanghai, China Monday, June 9, 2025. (Chinatopix Via AP)
In this image, taken from a video footage run by Phoenix TV via AP Video, Chinese Vice Premier He Lifeng, right, poses for photos with British Chancellor of Exchequer, Rachel Reeves, outside 11 Downing Street in London, England, Sunday, June 8, 2025. (AP Photo/Phoenix TV via AP Video)