Defaulting on a student loan can have serious consequences, including damage to credit scores, wage garnishment, and legal actions. It is important to explore available options, such as deferment, forbearance, or income-driven repayment plans, to avoid defaulting on student loans. Defaulted loans are not eligible for income driven options. We recommend that borrowers review the following Fact Sheet from Federal Student Aid for details on the Fresh Start program for borrowers with loans in default.