{"ok":true,"canonical_url":"https://dealroom.so/glossary/federal-student-loan-default","api_url":"https://dealroom.so/api/public/glossary/federal-student-loan-default","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"federal-student-loan-default","term":"Federal Student Loan Default","group":"People and paperwork","definition":"Defaulting on federal student loans means you failed to make payments as agreed. This is a red flag for SBA lenders and can make you ineligible for an SBA loan.","what_it_means":"The SBA prohibits borrowers with a federal student loan default from getting a 7(a) loan unless they are current on a repayment plan or have resolved the default. Lenders will check your credit history for this. If you have a default, you must resolve it before your loan can be approved.","url":"https://dealroom.so/glossary/federal-student-loan-default","official_sources":[{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"},{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"credit-report","term":"Credit report","url":"https://dealroom.so/glossary/credit-report"},{"slug":"derogatory-mark","term":"Derogatory mark","url":"https://dealroom.so/glossary/derogatory-mark"},{"slug":"bankruptcy","term":"Bankruptcy","url":"https://dealroom.so/glossary/bankruptcy"},{"slug":"creditworthiness","term":"Creditworthiness","url":"https://dealroom.so/glossary/creditworthiness"}],"related_questions":[{"question":"Will a past federal student loan default, now rehabilitated, affect my SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/will-a-past-federal-student-loan-default-now-rehabilitated-affect-my-sba-7-a-loan-approval"},{"question":"How does the lender determine if a prior federal debt delinquency or default (e.g., student loan, tax lien) impacts 7(a) loan eligibility?","url":"https://dealroom.so/for-lenders/questions/how-does-the-lender-determine-if-a-prior-federal-debt-delinquency-or-default-e-g-student-l"},{"question":"Does the SBA check for past defaults on federal debts, like student loans or prior SBA loans?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-check-for-past-defaults-on-federal-debts-like-student-loans-or-prior-sba-loan"},{"question":"What happens if a buyer has defaulted on a previous federal debt, like a student loan or a prior SBA loan?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-a-buyer-has-defaulted-on-a-previous-federal-debt-like-a-student-loan-or-a-"},{"question":"How does a borrower's prior federal debt delinquency or default (e.g., tax lien) impact their 7(a) loan eligibility?","url":"https://dealroom.so/for-lenders/questions/how-does-a-borrower-s-prior-federal-debt-delinquency-or-default-e-g-tax-lien-impact-their-"},{"question":"Can I get an SBA 7(a) loan if I have defaulted on a previous federal debt?","url":"https://dealroom.so/sba-loans/basics/can-i-get-an-sba-7-a-loan-if-i-have-defaulted-on-a-previous-federal-debt"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Federal Student Loan Default","url":"https://dealroom.so/glossary/federal-student-loan-default","source_type":"DealRoom Data"}}