It's critical that you take the responsibility to pay back your loans on time, because if you don't, your credit rating will suffer, and you'll be in for some very negative consequences! When you don't pay on time, you are considered a delinquent borrower, and this will be listed on your credit report. If you continue down a road of further late payments, you risk sending your loan into default status, which can have permanent effects on your ability to borrow money for other things in the future, such as a car loan, a mortgage, or even a credit card! Here are some other things that can happen to you if you default on your student loan:

• Default shows up on your credit report for up to 7 years
• Your wages can be garnished - up to 10%
• Income tax refunds can be withheld from you
• Your loan may be turned over to a collection agency, and you'll be responsible for all the costs associated with this process
• You will lose your eligibility for future deferments and forbearances

If you're having difficulty making your payments and you find yourself on the way to becoming delinquent on your student loan payments, contact your servicer to make immediate arrangements for your situation. In most cases, your lender or servicer will be happy to work with you to ensure that you'll be able to make student loan payments in the future, so don't lose hope!