No matter how long you have been paying off your student loans on time, missing nine consecutive payments results in defaulted student loans. Falling into default on your loan will ruin your credit score, leave you susceptible to wage garnishments, and put you into financial ruin.
It seems unfair that after years of paying off your loans on time that you have fallen onto hard times and now your credit score is plummeting. The fact of the matter is that your lender is going to try to recover their money no matter how faithfully you have made your payments in the past. This means that they will garner your wages, keep your tax return, and do anything else that they can within the law to recover the rest of the money that is owed to them.
Federal loans are some serious business and the consequences of defaulting on them are quite heavy. A default on a federal student loan will send your credit score down extremely fast and affect all of your finances.
Even if your loan has fallen into default you still have some recourse. Once you come to some sort of arrangement with your lenders and begin paying back your loan your credit score will start to improve. It will always be in your best interest to pay off your loan on time or to contact your lender at the first site of trouble but there are things you can do to recover even after your loan has went into default.
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