The Consequences of Failing to Pay Student Loans
What Happens if You Fail to Pay Back Student Loans?
It can sometimes be stressful making sure that you make your student loan payments; however, if you do not, consequences will follow. Student loan payments are especially important to pay. If you miss payments, your credit score will be negatively affected. Just like any negative mark on your credit report, this can keep you from getting a car, home, or any other type of loan in the future. This information will also be on your credit report for up to seven years. The government can also garnish your wages, which will allow your employer to withhold money from your paychecks. Not only would this be embarrassing, but it would also mean that you suddenly have smaller paychecks to work with. All of these reasons showcase the need to pay your student loans bills.
Do Student Loans Ever Expire?
Many people wonder if their student loans payments ever expire. There are ways in which your student loan payments can end. If you become permanently and totally disabled, or die, your student loans will be canceled. This means that your student loan debt will not be left behind for family members to pay. There are also other ways to cancel a student loan. This could happen if your school closed while you were a student. Another way in which your student loans could be canceled is if your school improperly trained and certified you for your job. While these are complicated situations, it is best to work with your lender to ensure that you take the correct steps to apply for a loan cancellation.
I’m Falling Behind on my Student Loan Payments. Now what?
If you are having trouble making student loan payments, or have begun to fall behind, it is important to get the help that you need. Advantage CCS can help you plan a budget that fits in with your needs. This will allow you to track where your money is going, and allow you to make necessary payments. Advantage CCS can also work with you to get some of your debt consolidated, so that you are able to get back on track with your monthly payments.
Don’t wait until there is a problem, either. If your student loans are about to come due, and you are concerned about your current budget working with your new payments, a non-profit credit counseling service can help you learn to adjust to your new budget and help you stay on track with your student loan payments. With the help of Advantage CCS, you can regain your financial freedom.