Understanding Delinquency and Default

Student loans, both federal and private, must be repaid, even if your financial situation becomes difficult. Your student loans cannot be cancelled if you withdraw early from your degree program or struggle to find a job after college. This page explains what happens if you miss payment on your student loans. 


The first day you miss a payment, you are delinquent. If you do not bring your payments current and remain delinquent for 90 days, your loan servicer will report your delinquency to each of the three nationwide consumer reporting companies. A negative credit rating may make it difficult for you to:

  • Rent an apartment
  • Sign up for utilities
  • Get a job
  • Get a car loan
  • Get a credit card
  • Get a cellphone plan

Learn more about credit reports, and request a free copy of your report.

If you have problems making your monthly loan payments, don't panic. There are several options to help you avoid defaulting on your student loan, including deferments, forbearances and loan consolidation. But you must act before the loan defaults. 

  • Having difficulty managing your FFEL loan serviced by HESC? Don’t wait! Contact HESC's Delinquency Resolution Team at This email address is being protected from spambots. You need JavaScript enabled to view it..


A student loan is defaulted when you fail to make your scheduled payments or make special arrangements with your lender or servicer to suspend payments according to the terms of your promissory note. The loan enters default when you have failed to repay for more than 270 consecutive days. Your loan can then be transferred to a collections agency, which will attempt to collect your debt on behalf of the U.S. Department of Education (ED). 

Defaulting on your loan is serious and has many consequences.

However, you can get out of default and repair the damage to your finances.

HESC Administrative Review

If your student loan is placed in default and HESC is your assigned debt collector, you have the right to a review.

If you believe a mistake has been made with your student loan which caused the default, you can ask HESC for an Administrative Review.

  • When HESC collects on your student loan, they send you a letter explaining the default process and offering you the opportunity to enter a repayment agreement.
  • This letter also includes an application for an administrative review.
  • If your written request for review is received within 60 days from the date of the letter, HESC won't report the default to collection bureaus or add collection charges to your loan until the review process is over.

If you’re having trouble repaying or are in default on your loan, HESC will work with you to assess your situation and help you enter a satisfactory repayment agreement.

For details, schedule a call with a HESC Loan Representative when it’s convenient for you.








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