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Stock impact report

What happens when you miss a student loan payment? [Yahoo! Finance]

NerdWallet, Inc. (NRDS) 
Company Research Source: Yahoo! Finance
Just one day after you miss a payment, your federal loan is considered delinquent. | Credit: Peter Dazeley / Getty Images Whether it is because you are juggling too many bills, your budget is stretched thin or you simply overlooked the due date, you have missed a student loan payment. What happens next? The unfortunate — though perhaps unsurprising — reality is that missing a student loan payment does carry consequences, ranging from late fees and credit damage to collections calls and even wage garnishment. How severe the consequences get, however, depends on how long the debt remains outstanding, which is why prompt action in this situation is essential. What happens if you do not pay your federal student loans? The distinction of a missed federal student loan is important to note here, because “what happens to you ultimately depends on the type of student loan you have: federal or private,” said Ramsey Solutions , a personal finance website. Just one day after you miss a Show less Read more
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