| There are a number of consequences to defaulting on | | | | impact your financial health, it can also have a negative |
| your student loans. Before you borrow, you must have | | | | impact on your relationships. Each year thousands of |
| the mindset that you are responsible for paying back | | | | people get divorced over money problems, |
| every dollar, plus interest that you borrow. | | | | foreclosures, and cars being repossessed because |
| Going to school online or via a traditional institution will | | | | they were unable to pay back loans and hurt their |
| cost you money. In fact, it costs more than most can | | | | ability to acquire credit. Don't fall prey making minimum |
| afford. As a result, the majority of individuals going to | | | | payments, skipping payments, and ultimately defaulting |
| college today take out multiple loans in order to pay for | | | | on your repayment schedule. |
| this significant expense. Regardless of which loans you | | | | Even if you are able to recover from a failure to |
| use to pay for college, you must pay them back upon | | | | repay your loans, the stigma will stay with you for |
| graduation. | | | | some time. Building good credit should be your goal and |
| What happens if you don't pay back your loans? Loan | | | | the best way to accomplish this is through making on |
| defaults continue to rise in today's economy and the | | | | time payments and only paying for those things for |
| impact is very negative for those individuals who | | | | which you already have the money. |
| cannot or choose not to repay them. Financial | | | | Student loans are rarely forgiven. If you are struggling |
| difficulties, employment problems, and relationship | | | | to make your monthly payments due to job loss or |
| issues can all result | | | | some other change in your status, don't hesitate to |
| When you fail to pay back your loans, your credit | | | | contact your lender before it becomes a problem. |
| score will be negatively impacted. In fact, this | | | | Once people fall behind in there payments they rarely, |
| information can stay on your credit report for more | | | | if ever catch up. |
| than five years after it has been discharged. This | | | | You can work with your lender to restructure the loan |
| significantly hurts your ability to get future loans, rent | | | | or stretch it out, lowering your monthly payment. |
| and apartment or buy a house. Anything that requires | | | | Although this adds to the life of the loan, it will certainly |
| an application will more than likely reference your | | | | help you manage your expenses in the short term. |
| credit. Companies do not want to sell you anything | | | | Don't let difficult times ruin your entire future. Start with |
| unless they know that you have the ability to pay for it. | | | | a mindset of responsibility and you will succeed. |
| Not only can poor credit or personal bankruptcy | | | | |