What happens if you never pay your student loans?
Let your lender know if you may have problems repaying your student loan.
Failing to pay your student loan within 90 days classifies the debt as delinquent, which means your credit rating will take a hit.
After 270 days, the student loan is in default and may then be transferred to a collection agency to recover..
What happens when your student loan goes to collections?
If your account goes to collections, you’ll be assessed collection fees in addition to the student loans you owe. … As long as your loans remain in default, FinAid says the following can also happen: Wages can be garnished and income tax refunds can be taken to repay debt.
How long do student loans stay in collections?
Legally, there are time limits for collecting unsecured debt. If six years pass with no payments or acknowledgement of your debt, your Canada Student Loan is written off. Each province and territory has its own statute of limitations for loans.
Can student loans be turned over to collection agency?
Government will stop sending collection agencies after student loan borrowers. Stop making payments on your student loans for 270 days, and the Department of Education will turn your account over to one of 13 private collection agencies. … Or they can consolidate their loans and enroll in income-driven repayment.