Millions of Americans are struggling to make their monthly student loan payments.
More than 1 in 3 borrowers with federal student loans were at least 30 days late on a payment, as of a June 2025 update from the Department of Education. Additionally, 42% of borrowers say their loans have negatively impacted their ability to cover their basic needs, a recent survey by The Institute for College Access and Success found.
If you’re struggling, “it may be tempting to just not make payments on your federal student loans, [but] that may not be a wise choice in the long run,” says Glenn Sanger-Hodgson, a student loan advisor at Student Loan Planner.
Avoiding your loans altogether may seem like your only option, especially if you’re juggling your monthly payment with necessities like rent or groceries. But if you skip payments for long enough that you default on your loans — typically 270 days after your first missed payment — the consequences could put you in an even worse situation.
“The federal government has extraordinary collection powers, such as the ability to garnish wages without a court order or to seize federal tax refunds, including refundable credits, like the earned income tax credit,” Sanger-Hodgson says.
