Home Financial Aid Tips Delinquency or Default?
Delinquency or Default?

Delinquency or Default?


student-loan-questions-smIf you are a student loan borrower and you are in danger of not being able to make payments, do you know the difference between delinquency and default?

According to Fedloan Servicing, a Department of Education sponsored website, this is the difference:


  • If you fail to make loan payments when due, your loan becomes delinquent.
  • Delinquent loans can adversely affect your credit rating.


  • If a loan is delinquent for 270 days, it goes into default.
  • If you default, you have to pay the entire unpaid balance and any accrued collection fees immediately.

Entering into either one of these circumstances is serious and could affect your personal finances greatly. If you are experiencing trouble and you need assistance you can contact the MYEDDEBT.com website.

By Michelle Robbins
Default Prevention and Compliance Specialist at American Public University