Hey Bruce, Welcome to Studio today, So We have caller who wants to know about Consequences of defaulted student loans.
Can you tell us today according to you what are consequences of defaulted student loan profile are.
Sure Jeff Hardy, I am happy to help your listeners, So If your student loan goes defaulted and you need relief, you will lose the right to deferments and forbearance. You will have to suffer the consequences of your defaulted student loan. Moreover, you may not be offered any additional Federal student aid. You cannot have escape from the brunt of your student debt unless you make payments for at least 6 consecutive months. If the student loan that you have borrowed is declared in default, the following are the consequences:
– The case of your defaulted student loan may be handed over to a collection agency
– The collection agency will be entrusted with a responsibility to collect the defaulted student loan
– You will be charged the cost associated with the collection of your student loan
– You will be liable to pay court costs and attorney fees other than collection fees
– You can be dragged to court in case of your defaulted student loan
– The amount that your wages is garnished with may be limited by Federal law
– You may face the interception of your state and federal income tax refunds
– Part of your Social Security benefit payments may be withheld by the Federal government
– The defaulted student loan will negatively affect your credit record and make you suffer its detrimental effects
– You will find it difficult to obtain a mortgage loan, an auto loan and even credit cards
– You will be denied deferments, federal interest benefits and renewal of your professional license
Contact Bruce mesnekoff for any further assistance
Student Loan Help Center General Manager Bruce Mesnekoff joins us to Discuss the Student Loan Situation in America
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