Failure to repay a student loan in accordance to the terms specified in the promissory note. Default occurs at 180 days when the delinquency date is prior to 10/7/98, and 270 days when the delinquency date is on or after 10/7/98. The school, lender, and state and federal governments may take legal action against the borrower to recover defaulted loan funds. There are serious consequences to a borrower’s credit and financial future if their student loan is not repaid.