The After-Effects of Defaulted Student Loan Status
Today, the rates for defaulted student loan issues have been reaching soaring heights. A major section of the student population opting for education loans are unable to repay the loaned amount within the desired due date.
If you are a student who is suffering from a defaulted student loan status then you have to consider repaying the amount by any means; no matter what it takes. This is simply because a defaulted student loan status would not only take toll on your credit score but also compel you to face undesirable consequences.
Here take a look at the different types of consequences you are likely to face on becoming a student loan defaulter:
- In most cases the IRS can seize your refunds on income tax until you repay the entire amount. Defaulted loans are mostly collected this way. Tax refund offset is designed to realize several debts from defaulters.
- Garnishing paycheck to realize debts is the most common consequence a student loan defaulter has to face. Every month the creditor would garnish a certain portion of your salary in order to collect the amount from you. The portion of your salary that they cut can jump up to 15 percent of the disposable income you earn every month.
- A defaulted student loan status can lead to legal consequences. It can so happen that you may be sued for an infinite number of years by the lender.
- The Government may grab your Federal benefits if you fail to repay the amount. The act is committed to acquire the amount you have failed to pay.
In order to wade off such consequences it is important that you seek help of defaulted student loan professional. The expert would advice you on probable ways to get rid of such difficult situations.
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