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Advanced placement, or AP, classes that are offered in high school can help a student prepare for college, be a more competitive applicant, and save money on tuition. Those are among the reasons that many students consider taking AP classes in high school.

Here’s a closer look at what AP classes are, what the benefits of taking them are, and how they can affect a student’s college experience.

What Are AP Classes?

AP stands for “advanced placement,” and AP classes prepare students for college by giving them college-level work during high school. Their dedication is awarded accordingly, as they can earn college credit and placement by taking corresponding AP exams.

One of the primary motivators for enrolling in AP classes is they prepare students to take and pass AP exams. Students who earn qualifying AP scores on these exams can receive credits from most colleges and universities in the United States.

Depending on their high school’s offerings, students can enroll in one or more of the 40-plus AP classes that cover a variety of subject matters such as arts, languages, sciences, mathematics, and literature.

In order to enroll in an AP class, there may be prerequisite classes that you must take first. It’s recommended that even if students meet the required qualifications in order to take an AP class, that they consider carefully if they are prepared to take a college level course.

The three main benefits of taking AP classes in high school relate to saving money, becoming a more competitive college applicant, and preparing for success in college.

Benefit #1: Saving Money on College Tuition

AP classes will take up a lot of your time in high school but can also save time and money down the line in college. When you receive a high score on an AP exam, the college you attend in the future may give you credit that cancels out the need to take a similar college class.

Some schools may offer advanced placement instead, which allows you to effectively test out of introductory level courses in the specific subject, but may not be counted toward credit.

Policies vary by school, but the more AP exams you pass, the more credits you may be able to earn. These credits could allow you to skip classes which could save you a semester of attending an introductory English literature or Spanish class. Add up enough of these credits, and you could potentially shave off an entire semester or more of your time spent at college.

Note that the policy on AP scores will vary from school to school, and not all schools offer credit for AP classes. Some schools may require a four or five on the AP exam in order to qualify for credit, while others may accept a three. It’s wise to look for details on this kind of policy when conducting your college search.

Generally, you can use AP credits to your financial advantage in two ways. You can either graduate early, which will save money on tuition, fees, and living expenses. Or, you can take lighter course loads across a four year period and can make time to take a part-time job or could add a second major or minor.

At the very least, you may be able to avoid paying for textbooks or lab fees in classes in which you have already mastered the subject matter.

Benefit #2: Making Your College Application More Competitive

When you apply for college, you typically work hard to put your best foot forward and to prove that you will thrive once you land on campus in the fall. College admissions departments carefully comb through transcripts, test scores, and personal essays to see if students will not only be a good fit at their school but to ensure the student has every chance of succeeding once they enroll.

This is one of the reasons AP classes can be beneficial to high school students. When a student thrives in an AP class, they are essentially thriving in a college class. Before an AP student arrives at college, they will clearly understand what will likely be expected of them, how rigorous the course work can be, and what steps they need to take to succeed academically.

Alongside proving preparation, AP students could receive a bit of a grade point average (GPA) boost if they earn good grades. Some high schools, but not all, will give more weight to AP grades than normal ones. For example, receiving a B in an AP class may provide as many points towards your GPA as if you earned an A in the non-AP version of the class.

Recommended: 5 Ways to Start Preparing for College

Benefit #3: Prepare for College Better

Taking an AP course is akin to taking an actual college course, which can help you get a taste for college. If structured properly, an AP course should give you a preview of what skills you need to succeed in a college class and what the workload might look like.

Learning to manage time properly, developing strong research and analytic skills, and covering material more quickly in an AP class can be helpful preparation for the rigors of college life.

Taking AP classes can also help you identify your interests and passions which may lead you to the right college. Having a preview of what it would be like to study French, Psychology, or Chemistry in college can help guide you during the application process towards schools that have strong programs in your chosen area of interest.

College Financing Options

When it comes to paying for college, there are a lot of different options available to students, including scholarships, grants, and federal financial aid.

But figuring out what you qualify for and how to apply can be overwhelming. A great first step is to complete the Free Application for Federal Student Aid (FAFSA). This will let you know what financial aid you are eligible for. For students and parents that need extra help covering the cost of attending college, student loans are a potential option. There are two types of student loans, federal and private.

Federal loans come with a fixed interest rate. With a subsidized federal loan, you don’t pay any interest while you are in school at least half-time. With an unsubsidized federal loan, interest begins to accrue right away (though you don’t have to start making payments until six months after you graduate).

Private student loans are available through banks, credit unions, and online lenders. Interest rates can be fixed or variable and will depend on the lender. Students that have excellent credit (or have cosigners who do) tend to get the lowest rates. Just keep in mind that private student loans may not offer the same protections, like income-based repayment plans, that come with federal student loans.

The Takeaway

Advanced placement or AP classes can benefit students in three key ways. It can give them a taste of college-level work and prepare them for what’s ahead. It can make them a more competitive applicant since it shows colleges that a student has undertaken advanced work. And it can potentially help a student save on tuition since they may be able to opt out of introductory and prerequisite courses. If a student still needs help with tuition costs, scholarships, grants, federal, and private student loans are possible sources.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

FAQ

What is the benefit of taking an AP class in high school?

The AP Program allows students to pursue college-level work while in high school and receive college credit, advanced academic standing, or both when they attend college. This can save money on tuition.

Do colleges care if you take AP classes in high school?

Yes, colleges often want to see evidence that applicants were able to excel in challenging classes in high school. For this reason, it can be advisable to take AP classes if they are offered and you are qualified to take them.

What are the disadvantages of taking AP classes in high school?

There can be disadvantages of taking AP classes in high school. These include an increased workload, the potential for lower grades since the courses are more challenging, and the cost of taking the AP exams (currently $99 each for students in the U.S., U.S. territories, and Canada).

About the author

Jacqueline DeMarco

Jacqueline DeMarco is a freelance writer who specializes in financial topics. Her first job out of college was in the financial industry, and it was there she gained a passion for helping others understand tricky financial topics. Read full bio.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOISL-Q325-091

Defaulting on student loans can happen after a borrower misses a series of payments on their loan. The number of loan payments missed before the loan enters default is different depending on whether the loans are federal or private, but the consequences of defaulting on either type can be severe. Ramifications include having the loans go to a collections agency and potential negative impacts on your credit score.

Read on to learn more about what student loan default is and what happens if you default on student loans.

What Is Student Loan Default?

Student loan default is a term for when you stop paying student loans by failing to make the required monthly payments on federal or private loans.

For example, if a borrower is having issues making monthly payments on their federal student loans and they stop paying them, after a certain number of missed payments, the loan will enter default.

There are serious repercussions for defaulting on student loans. What happens if you default on student loans is the balance of your loan becomes due in full immediately, your wages may be garnished, and your credit rating is damaged, among other consequences.

How Long It Takes to Enter Default

The length of time it takes to enter default depends on the type of student loan you have. For federal Direct loans and Federal Family Education Loans (FFEL), if a borrower fails to make a payment for 270 days, their loan is considered to be in default. (If a borrower has a federal Perkins loan, their loan can be deemed to be in default after just one missed payment.)

Private student loans have a different timeline for default, which can vary by lender. In general, however, private student loans are considered to be in default after 90 or 120 days of missed payments, depending on the lender.

Student Loan Default vs. Delinquency

Student loan delinquency is the early stage of missing a required loan payment. If you fail to pay over an extended period, you could face greater consequences for reaching late-stage delinquency.

Federal student loans are considered delinquent when you’re past due on a required payment by at least one day but less than nine months. Federal student loans are typically reported to the credit bureaus as delinquent if you are 90 or more days past due.

A delinquent federal student loan typically goes into default if you fall at least 270 days past due on required payments.

Lenders of private student loans can set their own parameters for delinquency vs. default. Banks, credit unions, and online lenders offer private student loans. Some may consider you in default if you are 90 or more days delinquent on a private student loan. Others may define default as falling 120 days past due after receiving a final demand letter.

Can You Default on Student Loans?

Yes, it’s possible for borrowers to default on student loans. If you are struggling to make monthly payments on your federal student loans and just stop paying them, after a certain number of missed payments, the loan will be in default.

Private student loans can also go into default, though, as mentioned above, this can happen more quickly than it does with a federal student loan.

Recommended: What is the Student Loan Default Rate?

How to Default on Student Loans

Defaulting on federal student loans is a process that takes place over a period of nonpayment. Typically when you first miss a payment, the loans are delinquent but not yet in default. At 90 days past due, your lender can report your missed payments to credit bureaus. And, as mentioned above, when you reach 270 days past due, your student loans are typically considered in default.

For private student loans, the terms for default can vary. Private student loan lenders may consider you in default if you’re 90 or 120 days or more past due on a required payment.

Private lenders may also place student loans in default if the borrower declares bankruptcy, passes away, or defaults on another loan. Terms can vary by lender, so if you have private student loans, double-check how they define default.

Defaulting on student loans can have serious consequences, but there are ways to avoid defaulting on your student loans — or recover if your loans are currently in default.

What Happens When Your Student Loans Default?

Here are four potential consequences of what happens if you default on student loans.

1. Collection Agencies Might Come Knocking

When a borrower defaults on student loans, the lender may eventually turn the debt over to a collection agency. The collection agency will then attempt to recover the payment, typically reaching out to you with frequent letters and phone calls.

Collection agencies may also attempt to determine what other assets, including bank accounts or property, would allow you to pay your debt. On top of dealing with regular calls from debt collectors, you may also be responsible for paying any additional fees the collection agency charges on top of your student loan balance.

2. Loan Forgiveness and Forbearance Options Are No Longer on the Table

Student loan default on federal loans means that the federal government can revoke your access to programs that might make it easier for you to pay your loans, including loan forgiveness or forbearance. This means that even if you qualify for something like the Public Service Loan Forgiveness program, you could be rendered ineligible if you let your loans go into default.

3. Your Credit Score Might Be Impacted

Once your student loans are in default, the lender or the collection agency will report your default to the three major credit bureaus. This means that your credit score could take a hit. A low credit score can make it harder for you to get a competitive interest rate when borrowing for other needs, like a car or home loan. In fact, having federal student loans in default can make it difficult to buy or sell real estate and other assets.

4. You Might Have to Give up Your Tax Refund, or a Portion of Your Wages

If your loan holder or a collection agency can’t recover the amount owed, they can request that the federal government withhold your tax refund and even garnish some of your income. For example, if you filed your taxes and were eligible for a refund, the government would instead take that refund money and apply it toward your defaulted student loan balance. On top of that, the government can garnish your wages, which means that they can take up to 15% of each paycheck to pay back your loans.

Recommended: What Happens When Your Student Loans Go to Collections?

5. You Could Lose Eligibility for Future Federal Aid

When your federal student loans go into default, you lose eligibility for additional federal aid, such as federal loans and federal Pell Grants. If you were planning to return to school, for instance, you will not be able to get federal student aid to do so.

How Can You Get Student Loans Out of Default?

Defaulting on student loans is a serious matter, but the good news is that there are ways of getting out of default.

To help recover from defaulted student loans, first, stop avoiding collection calls. If your student loan provider or a collection agency is calling, your best bet is to meet your lender or the agency head-on and discuss your options. The lender or the collection agency will be able to talk through the repayment options available to you based on your personal financial situation. They want you to pay, which means that they might be able to help find a payment plan that works for you.

The lender may be able to offer options tailored to your individual circumstances, such as satisfying the debt by paying a discounted lump sum, setting up a monthly payment plan based on your income, consolidating your debts, or even student loan rehabilitation for federal loans (see more about this below). Don’t let your fear stop you from reaching out to your lender or the collection agency.

How to Avoid Defaulting on Student Loans

Of course, even if you can get yourself out of student loan default, the default can still impact your credit score and loan forgiveness options. That’s why it’s generally best to take action before falling into default. If the student loan payments are difficult for you to make each month, there are things you can do to change your situation before your loans go into default.

First, consider talking to your lender directly. The lender should be able to explain any alternate student loan repayment plans available to you.

For federal loans, borrowers may be able to enroll in an income-driven repayment (IDR) plan. These repayment plans aim to make student loan payments more manageable by basing them on the borrower’s discretionary income and family size. This can make the loans more costly over the life of the loan, but the ability to make payments on time each month and avoid going into default are valuable.

There are currently, as of August 2025, several options for income-driven repayment. Depending on the plan you enroll in, the repayment term is extended to 20 to 25 years and payments are capped at 10% to 20% of your income. However, the U.S. domestic policy bill that was passed in July 2025 eliminates a number of student loan repayment plans. For borrowers taking out their first loans on or after July 1, 2026, there will be only two repayment options: the Standard Repayment Plan, which is a 10- to 25-year repayment plan, and the Repayment Assistance Program (RAP).

RAP is similar to previous income-driven plans that tied payments to income level and family size. On RAP, payments range from 1% to 10% of adjusted gross income for up to 30 years. At that point, any remaining debt will be forgiven. If your monthly payment doesn’t cover the interest owed, the interest will be cancelled.

One thing to be aware of is that while an income-driven repayment plan might help make monthly payments more manageable, extending the length of the loan means you could end up paying more interest than you would on the Standard Repayment Plan. The good news is that if you still have a balance at the end of the repayment term, your remaining debt is discharged (although it may be taxed).

Is Refinancing an Option?

Student loan refinancing could potentially help you avoid defaulting on your student loans by combining all your student loans into one new loan. When you refinance student loans, you might be able to secure a lower interest rate or loan terms that work better for your situation.

You can use a student loan refi calculator to see how much refinancing might save you.

However, if a borrower is already in default, refinancing defaulted student loans could be difficult. When a student loan is refinanced, a new loan is taken out with a private lender. As a part of the application and approval process, lenders will review factors including the borrower’s credit score and financial history among other factors.

Borrowers who are already in default may have already felt an impact on their credit score, which can influence their ability to get approved for a new loan. In some cases, adding a cosigner to the refinancing application could help improve a borrower’s chances of getting approved for a refinancing loan. But know that if federal student loans are refinanced they are no longer eligible for federal repayment plans or protections.

Help on Defaulted Student Loans

If you default on a federal student loan, here are some programs that can help you get them out of default.

Loan Rehabilitation

To apply for student loan rehabilitation, contact your loan servicer. In order to rehabilitate your federal student loan you must agree to make nine voluntary, reasonable, and affordable monthly payments within 20 days of the payment due date. This agreement must be completed in writing. All nine payments must be made within 10 consecutive months.

Private student loans do not qualify for federal student loan rehabilitation. Federal Direct Loans or loans made through the Federal Family Education Loan (FFEL) program qualify for student loan rehabilitation.

Loan Consolidation

Consolidating your federal student loans into a Direct Consolidation Loan is another option to get your defaulted federal student loans out of default. To consolidate defaulted federal student loans into a new Direct Consolidation Loan you have two options, which are:

•  Repaying the consolidated loan on an income-driven repayment plan.

•  Making three monthly payments on the defaulted loan before consolidating. These payments must be consecutive, voluntary, on-time, and account for the full monthly payment amount.

Again, private student loans are not eligible for consolidation through a Direct Consolidation Loan.

Recommended: Understanding How Student Loan Consolidation Works

Consumer Credit Counseling Services (CCCS)

Consumer Credit Counseling Services (CCCS) are usually non-profit organizations that offer free or low-cost counseling, education, and debt repayment services to help people facing financial difficulties.

If you’ve defaulted on a student loan, a credit counselor may be able to help by looking at your entire financial situation along with your student debt, laying out your options, then working with you to come up with the best option for student loan debt relief.

If you’re struggling with multiple debts, a credit counselor may be able to set up a debt management plan in which you make one monthly payment to the credit counseling organization, and they then make all of the individual monthly payments to your creditors.

While counselors usually don’t negotiate down your debts, they may be able to lower your monthly payments by working with your creditors to increase your loan terms or lower interest rates.

Just keep in mind: Credit counseling agencies are not the same thing as debt settlement companies. Debt settlement companies are profit-driven businesses that often charge steep fees for results that are rarely guaranteed. Debt settlement can also do long-term damage to your credit.

To avoid debt settlement scams and ensure you find a reputable credit counselor, you might start your search using the U.S. Department of Justice’s list of approved credit counseling agencies.

Legal Aid or Financial Hardship Support Services

For borrowers who need legal help with defaulted student loans, there are some legal aid resources available. Legal aid is typically free of charge to those below a certain level of income or who meet other requirements. To find legal aid in your state (if it is available), check LawHelp.org, a national nonprofit that provides referrals to legal aid.

Another resource is the American Bar Association’s Legal Help Finder, which can help low-income borrowers locate free legal help.

If you don’t qualify for free legal help with your student loans, the National Association of Consumer Advocates may be able to assist you in finding a lawyer in your area who handles student loan issues.

The Takeaway

Student loan default can have serious negative effects on your credit score and financial stability. If you’re worried about defaulting on your student loans, or you have already defaulted, consider taking immediate steps to remedy the situation before it gets worse. Contact your lender or loan servicer to learn about options available, such as loan rehabilitation, loan consolidation, and refinancing your loans.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

FAQ

Does a defaulted student loan ever go away?

It is possible to rehabilitate or consolidate a defaulted federal student loan to get it out of default so that it “goes away.” Some private lenders may offer programs or assistance to borrowers facing default, but they are not required to do so.

Will my student loans come out of default if I go back to school?

No, if you have student loans already in default, going back to school will not remove them from default. Students who have student loans in default will need to get the loans out of default before they can qualify to borrow any additional federal student loans.

Are defaulted student loans forgiven after 20 years?

Defaulted loans are not forgiven after 20 years. Students in default may consolidate or rehabilitate their loan and then enroll in an income-driven repayment plan, which could potentially qualify them for loan forgiveness at the end of their loan term, up to 25 years.

Can defaulted student loans affect my taxes or wages?

Yes, if you default on federal student loans, the government may garnish your wages — which means your employer may be required to withhold a portion (typically up to 15%) of your pay and send it to the loan servicer to repay your loan. In addition, your tax refunds may be withheld and the money applied to repayment of your defaulted loan.

What are the fastest ways to recover from student loan default?

Loan consolidation is generally one of the fastest ways to recover from student loan default. To do it, a borrower consolidates their defaulted loans into a new Direct Consolidation Loan, which immediately ends the default status of the loans. The borrower must agree to repay the consolidation loan on an income-driven repayment (IDR) plan or they must make three consecutive on-time full monthly payments before consolidating.

Just be aware that when you consolidate a defaulted loan or loans, the default remains on your credit report for seven years.

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.