Student Loans?

Question

Has anyone ever defaulted on a student loan? If so, what was the outcome?

Answer 1

They will follow you to the ends of the earth, garnish wages and tax refunds, attach the proceeds of any lawsuit or lottery you win, and you cannot discharge student loans in bankruptcy.

Answer 2

If you are unable to pay then you have up to 3 years of deferments for economic hardship and for unemployment and 4 years for anything. Once you default the lender sells back your loan to the Guarantor who will hunt you down and take anything and everything to regain the money. What you need to do is call the Guarantor and they will be able to set up a payment plan with you to get you current on your loans once this happens and you are current they will sell your loan back to the lender and you will resume normal payments for the duration. This will severely tarnish your credit for at least the next seven years. So once you are current again which you need to do if you haven't already ASAP. Contact your lender once the loans are sold back (they usually have a credit bureau dispute address for that type of correspondence and write in and explain your situation and why it reached that point and ask them to remove it. If they will then great if not keep bombarding the credit bureaus with dispute letters they must respond to each and generally this is more costly to the company to keep investigating your disputes than it will to remove it so most of the time if you keep on it they will take care of it.

Answer 3

Defaulting on student loans are a big no-no b/c it will negatively impact your credit history for years to come!!! It will also affect your ability to obtain certain government jobs, purchase a home, etc. Defer payments, don't default!!!

Answer 4

Take a deferment. You cannot get rid of these loans. They will even attach any tax refund you qualify for. You cannot even include them in a bankruptcy. They do work with you and help you out as much as possible.