If you haven’t made full, on-time federal student loan payments since the end of the on-ramp period (Sept. 30, 2024), now is the time to act — or risk defaulting as soon as July or August 2025.
Once your federal student loans are 270 days past due, they go into default — triggering serious consequences, including:
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Wage garnishment
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Credit score damage
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Loss of access to affordable repayment plans
According to recent data from the U.S. Department of Education, 5.6 million borrowers were already 91 to 180 days behind on payments as of March 31, 2025 — and are now at immediate risk of default. An additional 5 million borrowers defaulted earlier this year, meaning 10 million total borrowers — one in four — could be in default this summer.
But here’s the good news:
You still have time to avoid default and regain control of your loans — even if you’re behind on payments.
🚨 What You Should Do Right Now
✅ Step 1: Check Your Loan Status
Start by logging into StudentAid.gov to review:
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Your loan balance
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Loan type(s)
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Servicer(s) name and contact info
Your loan servicer may have changed, and if you have multiple servicers, you could be current with one and delinquent with another without even realizing it.
Tip: Log into each servicer’s website to check your payment history and loan status. Make sure your contact information is up to date so you don’t miss critical notifications.
If you’re behind on payments, your servicer should be contacting you regularly by phone, email, or mail. But if you’re not sure whether a call is legitimate, hang up and call your servicer back directly using their official phone number on StudentAid.gov.
🧭 Your Options for Avoiding Default
Just because you’re behind doesn’t mean you have to start making unaffordable payments immediately. There are multiple ways to bring your loans back into good standing:
💸 1. Enroll in an Income-Driven Repayment (IDR) Plan
IDR plans cap your monthly payments based on your income and family size. For low-income borrowers, payments can be as low as $0/month.
Plans include:
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Income-Based Repayment (IBR)
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Income-Contingent Repayment (ICR)
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The new SAVE Plan (if applicable)
Use the Loan Simulator on StudentAid.gov to estimate your monthly payment.
📌 Important: If you apply for IDR, ask your servicer to place you in processing forbearance — this pauses your payments and prevents your loan from entering default while your application is reviewed.
⚠️ As of May 2025, there’s a backlog of 2 million IDR applications, so don’t delay.
🔄 2. Consider Consolidation or Alternative Repayment Plans
If IDR doesn’t work for you or you’re ineligible, you may:
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Consolidate your loans to extend your repayment term and lower monthly payments
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Switch to Extended or Graduated Repayment Plans, which may offer more manageable payments
Ask your servicer which of these options you qualify for.
⏸️ 3. Request a Forbearance or Deferment
If even an IDR plan feels out of reach, call your servicer and request a forbearance or deferment.
Reasons may include:
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Medical expenses
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Childcare costs
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Housing insecurity
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Job loss or reduced income
These options temporarily pause your payments, though interest may still accrue, increasing your total repayment amount over time.
“These options buy you time,” says Kyra Taylor of the National Consumer Law Center. “They help you avoid default and give you breathing room to get back on your feet.”
🏦 4. Catch Up With a Lump Sum (If Possible)
If you can afford it, making a lump sum payment to cover your missed bills could bring your loan back into good standing quickly.
Also, explore federal loan discharge programs if you:
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Were defrauded by your school
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Couldn’t finish your program due to a school closure
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Are permanently disabled
🛡️ Already Enrolled in the SAVE Plan? You’re Likely Protected
About 7.8 million borrowers in the SAVE repayment plan have not been required to make payments since last summer. They’ve been placed in an interest-free forbearance while legal challenges to the plan continue.
That means:
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No payments required (for now)
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No risk of default (if you’re in forbearance)
Still, it’s worth double-checking your loan status to make sure your loans are properly marked as in forbearance.
🧑💼 You Don’t Have to Handle This Alone
Where to Get Help:
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StudentAid.gov – for official repayment tools, plan info, and updates on policy changes
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Your loan servicer – for personalized assistance with repayment plans and applications
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Legal aid organizations – for low-income borrowers needing help with loan disputes or servicer issues
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Student loan attorneys – for more complex situations or legal representation
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State student loan ombudsmen – many states have dedicated offices to help residents resolve loan issues
“It’s confusing right now,” says Taylor. “But borrowers have more options than they think.”
✅ Final Thoughts: Take Action Before It’s Too Late
If you’re behind on payments, the clock is ticking. Default can hit as soon as July 2025, and the financial consequences are long-lasting. But with the right plan — whether it’s IDR, deferment, consolidation, or forbearance — you can stay in control.
📬 Need more help navigating student loans, credit recovery, or financial planning?
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