Student loan default is considered to have taken place under Section 435(i)Title IV of the Higher Education Act after default has continued for 270 days. During the delinquency period, the lender must exercise ‘due diligence’ which means that they need to make an effort to contact the borrower with regard to repayment. Should efforts fail, the loan could be passed on to a quaranty agency. This could mean that the entire balance becomes payable. Student loan forbearance and loan deferment are no longer possible once defaulted on.