Legally, a past due loan is in default. Department of Education regulations state that a Perkins Loan is in default when it is 240 days past due.
What it means:
A defaulted loan can remain on your credit report for up to seven (7) years after you cure the default.
How it effects you:
A defaulted loan can prevent you from receiving financial aid at this or other institutions. Your academic records may be flagged, preventing you from attending this or any other school. You may be refused the necessary credit to purchase an appliance, automobile, or home. You may even be denied an apartment lease.