Step 1: Your Loan & Late Payment Information
Some servicers offer a grace period (e.g., 15 days) before a fee is charged. Enter days past the due date.
Step 2: Estimated Late Fee & Important Information
Understanding Late Payments:
Consequences of Late Payments Can Include:
- Damage to Your Credit Score: Payments typically reported as late to credit bureaus after 30 days past due, which can lower your score significantly.
- Increased Loan Cost: Besides late fees, interest may continue to accrue on your unpaid balance, increasing what you owe.
- Loss of Borrower Benefits: Some loans offer benefits like interest rate reductions for consistent on-time payments, which can be lost.
- Delinquency and Default: Consistent late payments lead to delinquency. For federal loans, default usually occurs after 270 days of non-payment, leading to severe consequences (wage garnishment, tax refund offset, etc.). Private loan default terms vary but can be quicker.
What to Do if You're Facing Late Payments:
- Contact Your Loan Servicer IMMEDIATELY: This is the most important step. Explain your situation. They can discuss options such as:
- Changing your due date.
- Forbearance or Deferment (for federal loans, and some private loans) to temporarily pause or reduce payments.
- Switching to a more affordable repayment plan (especially for federal loans, like an Income-Driven Repayment plan).
- Review Your Budget: See if you can reprioritize expenses to make your loan payments.
- Do Not Ignore Notices: Ignoring the problem will make it worse.