When you are behind on your student loan payments, it is considered a delinquency. It does not take long for a loan delinquency to occur. If you miss a due date payment, the very next day the loan is considered to be delinquent.
The loan goes into default if you are delinquent for a certain amount of time. The exact period of time may differ depending on the lender and the loan terms. However, for federal loans, the loan defaults if there you did not make payments for nine months.
Consequences Of Student Loan Delinquency
The exact consequences for loan delinquency would depend on the type of loan as well, as the cause and duration of delinquency. For example, if a few days have passed since your payment deadline and you still cannot make the payment, your loan will remain in delinquent status until you pay it up or you chose deferment or forbearance. The delinquency cancels as soon as you pay up.
Consequences Of Student Loan Default
Defaulting on a loan, however, can have much more serious consequences. If you do not make the payment on your delinquent loan for about 9 months or 270 days, you officially default. If this happens, it could adversely affect your credit ratings, making it difficult in the future to obtain a mortgage, get approval to rent an apartment or purchase homeowner’s insurance.