It is important to always make your scheduled payment on time to your loan servicer. There are serious consequences if you don’t make the full scheduled payment or if you don’t make the payment on time. You will be placed in a “Delinquent” status and eventually, you could be placed in “Default”.
Default means you failed to make payments on your federal student loan(s) according to the terms of the promissory note (legally binding document) you signed prior to borrowing the student loans. Some of the consequences of default are as follows:
If you have trouble making payments, make sure you keep in contact with the servicer of your loans. Your servicer may be able to offer you options to keep you from going into default.
Servicers can look at the different Repayment Plan options to see if your scheduled payment can be reduced. For more information about the repayment plan options, visit the U.S. Department of Education's Federal Student Aid website and select “How to Repay Your Loans”.