 Best practice found that the best time to intervene is during the six-month grace period after a student graduates, withdraws, or drops below half-time attendance in school.After a loan has been in default for 270 days (meaning no payment has been made) and the loan agency is unable to collect the loan, the loan is turned over to the state's guarantor.The loan may become "accelerated," meaning the entire balance will be due in a single payment.