Behind on student loans

According to Marketwatch, about 40 million Americans currently have student loan debt of some kind. Coupled with a complex job market, one in four students are either delinquent or in default on their loans.

Personal Finance publication Kiplinger says that the most important thing to do is to contact the loan servicer immediately. After 90 days federal loans are reported to the credit bureaus, and after 270 days the loan typically goes into default which will cause the borrower to lose federal loan benefits like repayment plans and loan forgiveness.

Contacting the loan company before or during a missed payment will allow the borrower to adjust their terms or apply for deferment or forbearance.