Whether you have federal or private student loans, you’re expected to make your payments on time. If you don’t send the required amount by the deadline, your missed student loan payment can have a variety of consequences that affect your repayment, costs, and your finances overall. 

Here’s what can happen if you make a late payment, and what you can do to prevent a missed payment in the first place.

A missed student loan payment can have very serious repercussions. Many of these consequences don’t kick in until you are at least 30, 90, or 120 days on payments — but it’s still important to understand what could happen if you fall behind. 

1. Late fees: Both federal and private student loan lenders can charge you a fee for being late with payments. For example, you could be charged 6% of the payment amount for making a late payment on your federal Direct Loans. If your payment is $300 a month, this could add up to $18 in late fees. 
2. Damage to your credit score: Private lenders and federal loan servicers will report late payments to the three major credit reporting agencies. For federal loans, you will be reported late after 90 days; reporting for private loans varies by lender. Even one late payment on your credit history can reduce your credit score and make future borrowing more difficult and expensive. 
3. Loan acceleration: If you’re very late on payments, your loans will enter default. For federal loans, this happens after 270 days (about nine months) without a scheduled payment — though it can happen sooner for many private loans. When this occurs, your loan may be accelerated. This means the entire loan balance, including any unpaid interest, becomes due immediately. 
4. Lost eligibility for borrower benefits: If you’re in default, you can lose eligibility for certain federal loan benefits, including deferment and forbearance. You’ll also be unable to qualify for additional student loans. 
5. Liens on property: You may be unable to buy or sell property because a lien could be placed on it if you’re in default. 
6. Withholding of tax refunds and federal benefits: When your loans are in default, federal benefit payments and tax refunds can be withheld under a process called a Treasury Offset. 
7. Wage garnishment: Your earnings may be garnished in order to collect payments if you have defaulted on your loans. When your wages are garnished, your employer is instructed to withhold a portion of your pay and send it directly to your student loan servicer. 
8. Court proceedings: You could be sued for falling into default on federal or private student loans. 
9. Additional collection costs: When lenders incur collection costs to get their money, you will typically be responsible for paying these fees. Some additional fees could include court costs, attorney fees, and other expenses. 
10. Withholding of your transcript: Your school may withhold your official transcript if you’re in default on your student loans. 

When you have federal student loans, your loans become delinquent on the first day after a missed payment. However, the consequences of being late don’t kick in immediately. 

Here’s what happens if you miss a payment on your federal loans:

Entering default can trigger the most serious consequences, including loan acceleration, liens on property, seizure of federal benefits or wages, and court proceedings.

When you’re late on a private student loan, the consequences — and the timeline for those consequences — will depend on your lender’s specific policies. 

However, here’s a general idea of what to expect from most private lenders after a missed student loan payment:

Check with your lender to find out exactly what the consequences are if you miss a student loan payment and how long you have to catch up. 

If you miss a student loan payment, take action immediately to minimize the repercussions. Consider these steps:

Related: Learn more about refinancing your student loans

There are many options to ensure you always pay your loan on time.  Here are some steps you can take now to help you stay on track:

By taking these steps, you can hopefully avoid missed student loan payments — and you won’t have to worry about how they can impact your finances. 

Related: Learn more about refinancing your student loans