What happens if I default on a private student loan?

Private lenders may attempt to collect on your debt directly, or they may hire collection agencies to try to collect on your debt. In addition, they may take you to court. Lenders can also report your default to the credit reporting agencies, which could harm your credit.

Tip:

If you are worried you won’t be able to pay your private student loan, you should contact your lender as soon as possible. You may be able to negotiate with your lender to set up a repayment plan or otherwise settle your debt. 

Ask CFPB provides general consumer information. It is not legal advice or regulatory guidance. The CFPB updates this information periodically.

Ask CFPB includes links or references to third-party resources or content. The CFPB does not endorse the third-party or guarantee the accuracy of this third-party information. There may be other resources that also serve your needs.

Read full answer Hide full answer