It is never a good idea to default on a loan. There are all sorts of negative consequences like damage to your credit score. However, students are not having an easy time of it these days and it’s leaving many of them facing a Student Loan Default. There are not as many jobs available to graduates as there once was and it is resulting in many people having to carry their student loans well into adulthood.
If you do not get Student Loan Help and you are forced to default then you will be faced with one or more of the following:
- Legal action – The worst part of student loans is that there is no statute of limitation if you default. A private lender or the government can sue you for the money anytime they want till the day you die.
- Loss of federal aid –If you owe on a government student loan then they can take away things like your SS retirement benefits and your SS disability benefits. They cannot take it all though. They have to leave you no less than 9,000 dollars a year in benefits or 750 dollars a month. Plus, they cannot take more than 15 percent of your total benefits so it is similar to wage garnishment
- Wage garnishment – The government is allowed to garnish your wages by taking a limited portion of your paycheck as recompense for the loan. They can take up to 15 percent of your total disposable income but not more than thirty times the current minimum wage.
- Loss of tax refunds – Until you have paid your loan in full, the IRS is allowed to take any tax refunds you may be due as payment on the loan.
Don’t let it go to the point of default. Get Help with Student Loans from the Student Consulting Group. They have all the information you need to get back on track.