 TITLE: What to Expect If You Default on a Student Loan CONTENT: How Does Student Loan Default Affect Credit?\n--------------------------------------------\nPayment history is the most important factor in your credit scores, accounting for 35% of your FICO® Score☉ , the most commonly used scoring model. That means just one missed payment can negatively impact it, and nine months of skipped bills can lower your score significantly.\nA payment is considered missed if it's more than 30 days overdue. It stays on your credit report, meaning it's visible to lenders, for seven years. The way student loan servicers collect loan bills can also magnify the effect of a missed payment. If you have multiple student loans managed by the same servicer, one monthly payment may cover several loans. So on your credit report, a single missed bill could put multiple loans into delinquency or default.\nAdditionally, when federal loans go into default, your credit report will include a derogatory mark noting that the loan holder has filed a claim with the government to collect on the debt. A collection company may buy your defaulted private student loan debt, and that collection account will also show up in your credit history. Each of these marks will stay there for seven years.\nIf you pay all bills on time and avoid using a substantial amount of your available credit, the impact those negative marks have on your score will decrease over time. END