Defaulting on a federal or private student loan can result in similar repercussions. While the penalties for defaulting on a federally held student loan can be more severe, the negative impact on your credit, employment options and income will be virtually the same. There are several things that you can do to better your situation after student loan default has occurred, but you will need to take prompt action.

Look for Ways to Get Back in Good Graces
Once a student loan is defaulted on, legal action can be taken at any point. Both private and federal student loans are notoriously difficult to have discharged via bankruptcy, fees and interest continues to accumulate indefinitely. If you are able to prove that your student loan default occurred due to financial or personal hardship, there is a chance that a reasonable payment arrangement can be set up. Federal student loan debts can also be forgiven if you participate in programs such as the Peace Corps, or teach for a period of 10 years or more.

Contact the Lender
After determining whether you have a private or federal student loan, you will need to make contact with the guarantor. Federal student loan companies will give you the option of rehabbing your loan if you agree to a set repayment schedule. Once your student loan is successfully rehabbed, all negative remarks concerning your past delinquencies will be deleted.

Find a Program
With private student loans, default occurs once four or more consecutive payments have not been made. At this point, your private student loan guarantor will demand full payment of the total amount due. Some privately held student loan companies have hardship programs, which allow consumers to request deferments, forbearance and other forms of temporary relief. You will need to fill out the proper corresponding application, supply the necessary documents and wait to see if your petition for student loan default relief is accepted.

Ultimately, the only way to combat student loan default is to speak with the entity that guaranteed your loan. Even if you are not in a position to start repaying your debt right away, there may be new programs available to you. Ignoring notice of student loan default will only cause you more difficulty in the future, so utilize every channel available to you until your issue is completely resolved. Often defaulting on student loans happens when there is a lack of cash flow coming in regularly. If you are having trouble in other aspects of your life, payday loans and other cash advancement options can often help if you find yourself in a pinch.