What happens if I miss a student loan payment?

If a borrower misses a student loan payment, several factors can come into play depending on the type of loan and the specific terms set by the loan servicer, such as American Education Services. Initially, a missed payment may result in late fees being assessed on the account. This can increase the total balance owed and potentially impact the borrower's credit score. Typically, lenders report payment delinquencies to credit bureaus after a borrower is thirty days late. This can harm the individual's credit score, making it more difficult to secure future loans or credit. It is essential to understand that being consistently missing payments can lead to default on the loan, which may carry serious consequences, including the possibility of wage garnishment or tax refund seizure. If a borrower finds that they cannot make a payment, it is usually advisable to explore available options such as deferment, forbearance, or income-driven repayment plans. American Education Services generally provides resources and information on how to manage missed payments and offers guidance on available repayment options. For specific terms and assistance, it may be beneficial to check the current web page for more details.