What are the consequences of not paying a student loan?
If you don't pay your student loans, your credit will be destroyed. They'll garnish your paychecks, take your tax returns, take your social security when you get old. You'll end up owing more in debt, because of the penalties and fees you'll incur. I've seen loans that were $100k end up being over $200k because of penalties and late fees. This isn't something to mess with. You *have* to pay your student loans.
What are the consequences of defaulting on a student loan?
If you are "paying money", it means you are earning it somewhere.If you stop making payments or reduce the minimum required payment on your own (without the creditor company's approval), you will find yourself in the following situation:your wages will be garnished (amounts established by the agreement you had signed at the beginning when you took out the loan)garnishments will follow you regardless of what company you're working for (and imagine what it would be when your employer is directed by the court/collection agency to withhold your wages) - it's not dignifyingyour credit report will carry this penalty of default, and it will ruin your credit scoreThis could help explain why student loans are given so freely - because they are not dischargeable.Even if you declare bankruptcy, your student loans will remain intact.You did not provide enough details for me to make a case for you, however, if you are indeed heavily indebted, and you just cannot continue to live like this, there is a way to *hopefully* get a relief.This won't be easy, otherwise everyone would have done it, and it requires proving a hardship.It's a lengthy process, and you will have to retain an attorney for this, but if you make a decent case in a court of law that you are indeed forced into poverty because of the payments you are required to make, and if you can support this with paperwork (and document your living conditions, hardships, and if you are on an assistance from state due to not being able to cover your payments), THEN you have a case, and there's a chance of your debt being either reduced or discharged completely.I have not gone through this process, however I have heard from several people about their experience. Many describe it as humiliating (so it depends on how thick your skin is), and very invasive, since you will have to put your life details out there in the open for the creditor to judge.If you think you can tolerate this, then you can give it a try. Otherwise you will have to concentrate on what others are doing in similar situations - finding a better paying job.
Question About Student Loans Please Help?
Federal student loans have pre-set limits that are based on grade level and dependency status (i.e. dependent or independent). For example, a dependent freshman student is usually awarded $5,500 in federal student loans. You cannot receive more than your school's Cost of Attendance, so if that happens, the school has to reduce your loan (this is not common). Some schools attempt to keep students from overborrowing by offering them just enough to pay the school's charges., with perhaps a little left over for books. The idea behind this is that when students are offered their entire loans, they tend to take the whole amount whether they need it or not. Some students don't know they can borrow less, others just like getting a big refund check and go out and spend it frivolously without thinking about the long term consequences of student debt. By initially offering less, the school hopes that the student will only request more if they really need it. However, the student still retains the right to borrow his entire eligibility and the decision is ultimately his, not the school's. We can't tell whether your eligibility is only $675 or if your school is only offering you this amount to encourage you to limit your borrowing. The only way to find out is to contact the FA office at your school and ask.
What are the consequences if the loan contract is broken?
Depends on the kind of loan and how long you are delinquent. 30-90 days - late fees, and dings on credit report. If what you got the loan on is repossesable - It will get repossessed, and then your credit will be wrecked if they go that far. If the lender writes off the loan, it gets sold to a collection agency - still wrecking your credit.
What happens if i don't pay student loans ?
i'm going into debt to go to college , A LOT of debt and I'm majoring in business, anyhow what if i can't get a job with my degree , let's just say i was getting no work and was unable to pay my loans . What happens ? Do i go to jail?
What are the consequences of defaulting a Parent PLUS loan when the borrower is no longer residing in the country?
The consequences of defaulting on a Federal Parent PLUS loan are the same as the Consequences of Defaulting on Federal Student Loans. They can include administrative wage garnishment, offsetting of Social Security benefit payments and intercepting federal and state income tax refunds. Clearly, if a borrower lives outside the U.S., does not work for a U.S. employer and has no plans of returning, there are fewer tools available to the U.S. Department of Education to collect the defaulted loan. But the U.S. Department of Education can still offset up to 15% of Social Security retirement benefits to repay the defaulted loan.
What happens if you don't repay your student loans?
Just so you, you will have to pay those loans off until you die....literally. Those loans cannot be discharged in bankruptcy, and you will have to pay those off. The longer you wait to pay them off, the larger the balances will grow (interest, late fees, etc.) that will make the payments explode in size. Your credit will be ruined. You will not be able to get a loan for a car or house (which I'm assuming you will want at some point in your life). Unless you save up $200,000 in cash for a house, good luck on that one. In addition, you will be unlikely to receive any job of significance as many employers do credit checks. The government will not pay back your loans. They will garnish your wages, bank accounts, any tax refunds or rebates you are due in the future, etc. As someone else said, jail would be more preferable than everything else that will happen. There won't be any repossession because you will have no property of consequence to repossess.
What happens if you dont pay your student loan?
She can say that now, but the government doesn't forget about student loan obligations. This will haunt her forever, so she better make arrangements to get it paid. She will have a very difficult time getting a home, car, etc., if she has defaulted on student loans. NOT smart thinking for a recent college grad!!!