14 Things That Could Happen if You Don’t Pay Your Student Loans

Nick MannBy Nick Mann | 
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Making student loan payments on top of a pile of other bills is difficult for many people. As a result, more than one million student loan borrowers go into default every year.

Furthermore, a study by the Federal Reserve found nearly one in five student loan recipients were at least 90 days behind on payments.

Here are 14 specific consequences that can stem from failing to pay student loans.


Late Payment Consequences – There are two main repercussions of late payments.

1. Late Fees

If you’re 30 days late on federal student loans, you’ll typically encounter a late fee of up to 6 percent of the amount you owe. So if you owed $350, you may have to pay up to $21 extra on top of your existing student loan payment.

Private student loans have similar late fees but aren’t standardized. In this scenario, you’ll either pay a predetermined percentage or a flat fee, whichever is higher.