A student loan from the government enables each person to have the chance to get a degree only if they don’t default on the student loans. Student loans are wonderful to have available to almost any student who decides to attend college to obtain a degree. Here are four important information on the consequences of defaulting on student loans.
You will have to pay cash
If you mess up a student loan then the government will not give you another loan for a long while. You will end up having to pay cash for everything for a few years or longer. It is up to them to decide when you are eligible for a student loan again. You will end up having to work twice as hard in college in order to accomplish good grades. Student loans are like a life saver in order to help the student be able to only focus on college and not worry how they are going to pay for things.
You will have to get your loan out of default
You will end up having to make payments in order to get your loan out of default. This may last for several years until you are finally caught up again. Don’t let a student loan go into default for years otherwise it will just take even longer to get straightened out. The government wants to see that you are responsible enough to be given a second chance again.
Your credit rating will be messed up
If you once had perfect credit then a default student loan would mess it up. Your credit sore would be reduced a large amount. Your score would go down to the point that most people wouldn’t give you credit. It is always best to keep any credit cards that you currently have just in case this happens you won’t be totally stuck. The government decided to give you the student loan despite your credit rating. The government gave you a chance to improve your life despite your credit rating whether it was good,bad,and perfect. See with student loans the government backs them like a cosigner does. It guarantees that the debt will be paid to the lender.
Your bank accounts
The government will come after your bank accounts, assets, and anything else that is worth a thing eventually. They usually wait until you are successful in life with a good job and a nice house. The government wants their money back from the student loan. They will use every way possible to get that money back. Whatever you do when it comes to student loans make sure to make payment arrangements to make them happy so they don’t take everything you own.
You can not bankrupt a student loan anymore. A long time ago you use to be able to bankrupt student loans, but now they won’t let you. A student loan will never go away. They can take your tax return money for several years.