College education is expensive. So it comes as no surprise that a majority of people have taken out student loans.
Just like personal loans, car loans and mortgage loans, student loans are a similar type of installment loan.
They are also part of your credit history and directly impact your payment history, credit mix, and credit score.
Not paying your student loans on time or missing a payment can directly hurt your credit score.
While the default period is usually 120 days, check your loan terms to understand your lender's agreement.
If you don't make payments on time, you risk losing all access to any further federal aid until payments are cleared.
You could also risk losing your wages to the lender, or have a collection agency step in to collect the past due amount.
Make regular payments to the student loan and the positive credit history will actually help boost your credit score.
If you're struggling, refinance your student loan so you get a lower interest rate.