In order to get out of default, you must make at least nine timely payments (within 20 days of when due) in a period of ten consecutive months.
Perkins rehabilitation does not specify that the payments must be reasonable and affordable, only that the nine required payment amounts are to be set by the school.
However, if you are unable to maintain on-time payments for six consecutive months during the first time you get a reasonable and affordable payment plan, you may try another reasonable and affordable payment plan.
Consolidating student loans get out default
(If you’ve missed payments but aren’t technically in default yet, avoid it by signing up for an income-driven repayment plan, asking for deferment or forbearance, or calling your private lender to request a lower payment.) Federal student loans are considered “delinquent” the first time you miss a payment.
A late payment will start affecting your credit score after it’s 90 days late, but the most serious consequences hit when your loan goes into default.
If you still don’t pay, your loans will go into default.
A student loan default will be on your credit report for seven years, making it hard to borrow money for a car, home or another degree.
For most federal student loans, that happens when you’re 270 days late on a payment.