Missing a payment on your student loan can have significant repercussions and may affect your financial future.

Immediate Consequences of Missing a Payment

• Late Fees: Most loan servicers will charge you a late fee if your payment is not received by the due date.
• Credit Score Impact: A missed payment can adversely affect your credit score, especially if it’s reported to credit bureaus.
• Increased Debt: Adding late fees to your existing balance can increase the total amount owed.

Long-term Consequences of Missing a Payment

• Default: After 270 days of missed payments, your loan may go into default, which can lead to wage garnishments and tax refund seizures.
• Higher Interest Rates: Defaulted loans often have higher interest rates, making repayment more costly.
• Loss of Benefits: You may lose access to deferment or forbearance options.

Steps to Take if You Miss a Payment

1. Contact Your Loan Servicer: Always inform your servicer of your situation.
2. Make a Partial Payment: If possible, make a partial payment to reduce the amount of overdue debt.
3. Explore Repayment Options: Look into options such as income-driven repayment plans.

Visualization: Consequences of Missing a Payment

| Consequence      | Description                                                     ||------------------|---------------------------------------------------------------|| Late Fees        | Charges incurred for making late payments                      || Credit Score     | Negative impact that affects borrowing possibilities            || Increased Debt   | Additional costs accrued from late fees                        || Default          | Facing severe consequences after prolonged missed payments     || Higher Rates     | Increased interest on loans in default                         || Loss of Benefits  | Losing access to repayment relief options                      |

Mind Map of Student Loan Payment Missed Consequences

- Missed Payment    - Immediate Consequences        - Late Fees        - Credit Score Impact        - Increased Debt    - Long-term Consequences        - Default        - Higher Interest Rates        - Loss of Benefits

Statistics That Highlight the Importance of Timely Payments