Student Loan Assistance Defaulted Federal Student Loan Information Consequences of Default Your federal student loan is in default if you don’t make your monthly payments for 270 days. These are the consequences you may face: You may lose your federal and state income tax refunds. You may lose other federal or state payments. Legal action can be taken against you. You may be charged collection costs (including attorney fees). You may lose your professional license. The interest rate on the loan may increase. You may lose eligibility for other student aid and assistance under most federal benefit programs. You may lose your eligibility for federal student loan deferments. Information about your loan will be reported to national credit bureaus and hurt your credit rating. Your employer may be required to take part of your wages to pay your federal student loan (wage garnishment). Get Out of Default Take the necessary steps to get out of default by paying off your federal student loan or rehabilitating your federal student loan by making nine payments, within 20 days of your due date, over 10 months. Should you discover that your federal student loan is delinquent, contact the Inceptia Outreach Team to visit with a trained counselor at 855.471.1615 to learn of repayment options to help you get back on-track.