| Why should you not default on Student Loan? | | | | - Your bad credits will keep haunting you for a long |
| Unlike the regular loans, getting into a defaulted | | | | time |
| student loan is very difficult. A couple of defaults | | | | - You lose many options for repaying your current |
| doesn't get you there. If you do not pay a single | | | | and future loans. |
| installment in 9 months, you enter student loan | | | | If you are planning to use Chapter 13 or 7 as a |
| default. In other words, unless you have messed up | | | | cover, you must read the clauses of bankruptcy. |
| your repayment in a big way you cannot default on a | | | | Your student loan does not get cancelled with that. |
| student loan. | | | | Contract? |
| There is another reason why it would be tough to | | | | If you are unable to pay your student loan it is in |
| default these loans. Over the years there have been | | | | your best interest to look at alternatives you have |
| many incentives for companies to offer student loans | | | | to avoid defaulting. It is also a good time to look |
| leading to loans structures of various forms that suit | | | | back at the loan agreement that you signed when |
| people from varied backgrounds and challenges. | | | | you opted for the student loan. You had been |
| Besides, student loan interest rates are some of the | | | | enrolled into a legal contract to make the monthly |
| lowest in the industry. It is important that you don't | | | | payments on your loan amount on a stipulated due |
| default on friendly loans like these because such | | | | date. |
| defaults would get recorded against your credit | | | | It is not unusual to get into a defaulted student loan |
| ratings that can affect your salary structures. These | | | | due to some un-planned events or change in |
| defaults can also affect your income tax returns and | | | | circumstances. Not just newly graduated students, |
| potential refunds. | | | | but also experienced professional can run into such |
| And more: | | | | situations that disrupt their fine, financial balance |
| - You would be pestered by the collection agents for | | | | between expenses and income. |
| repayment | | | | |