According to research from TransUnion, nearly 6 million Americans are at least three months behind on their federal student loans payments.
The Federal Student Aid office warns that many delinquent borrowers are in danger of defaulting in the coming months
"If I miss one payment then you know the interest is gonna capitalize on itself and I may not be able to pay it all back does that mean that it's gonna rupture my credit does that mean that I can't do the things that I want to do," said Graduate Student Dorien Rogers.
The day you miss a payment, your loan is considered delinquent. After 90 days, it's reported to the credit bureaus, hurting your credit score. And if the delinquency continues, it can tip into default, bringing even tougher consequences.
"You want to do everything you can to keep your loans out of collections. Once they get there, you're in real trouble," said Chuck Bell with Consumer Reports.
Debt collectors can take part of your paycheck, your tax refund, even your Social Security payments.
So if you're facing this tough reality, call your loan servicer. Ask about your options and find out which repayment plan matches your current financial situation.
And if you've already slipped into default, the Department of Education says there are two main ways out.
One path is loan rehabilitation. - What you'll need to do depends on your loan type and who holds it, so reach out to your loan holder.
For Direct Loans or F-F-E-L Program Loans, you agree to make affordable monthly payments within 10 months. Once you've completed that, your loan is no longer in default.
The other option is loan consolidation. - It lets you roll one or more defaulted loans into a single new loan, meaning one monthly payment. But keep in mind, you could end up paying more in interest over time.
"Whichever path you choose, the key is not to ignore the problem. The sooner you act, the more options you'll have to get back on track," added Bell.
Consumer Reports also warns to look out for student loan scams. That includes being mindful of anyone promising fast debt relief. They may charge big fees or even steal your personal information. Always check with your loan servicer before agreeing to anything.