I have been living abroad since graduating from University and have deffered payments of my loans each year as the money I earn here is not worth much in US dollars. Now I can not use defferments and the student loan payments will be a severe blow in my budget, I know that it is my obligation to pay regardless but would like information and advice on the repurcussions to aid my thought process before making a final descion.
Thanks,
Robert
2006-09-21 12:18:08 · 6 answers · asked by robertmerchant78 1 in Business & Finance ➔ Credit
Absolutely! Once you take a student loan, the US government owns you (see indentured servitude). They usually won't come after you outside the US, so if you never plan to return it is no worries. But if you return, they will garnish your wages (in big amounts), take any other money you might get, and make your life generally miserable. If they default and go on your credit report, forget about EVER owning a home...plus the penalties will double or triple the owed amount. Have you looked into forbearances? Or consolidation to lower the payments (income sensitive option)?
2006-09-25 11:04:02 · answer #1 · answered by nativeAZ 5 · 0⤊ 0⤋
Did you not read the paper work before you accepted your student loans, whether government or bank issued. If you can afford to live abroad, then you can afford to pay back the money you borrowed for your education. Defaulting on a student loan is more serious than missing a credit card payment. Maybe you should consider making your student loan payments with the credit card that you can make payments on. If you can afford to have a credit card, you can afford to make your student loan payments. Because those credit card offers won't be made if you default on your student loans. How bout that car loan, or home loan you might want in the future? Default on the credit card and you might be told not to use it again. Default on your student loans, and your credit score will be in ruins for how ever many years it takes for you to figure out what the right thing is to do.
2006-09-21 13:30:11 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If the loan payments are to high, check around for other student loan lenders and see if you can get longer time to pay. I did this for 12 years but only $100 a month that was more affordable at that time. If you don't pay them as it stands and not make other arrangements with them it will effect your credit report at all three agencies. You really don't want that. There is no filing bankruptcy against student loans so I would pay what you can, when you can to keep them happy.
2006-09-21 12:23:56 · answer #3 · answered by Diana 2 · 0⤊ 0⤋
What's there to know? You borrowed money, so pay it back. Where are your ethics? Why are you living abroad if you've got obligations here in the States? Come back, get a job, and fulfill your obligations. Stop trying to figure out the best way to default!
It's because of people like you that lenders are so ruthless with penalties and interest rates in the first place.
2006-09-21 12:32:21 · answer #4 · answered by Anonymous · 0⤊ 0⤋
repercussions on a student loan are much more severe than defaulting on credit cards due to federal backing of student loans therefore garnishing can occur and high interest rates and penalties when not repaid in a timely manner
2006-09-21 12:20:41 · answer #5 · answered by Anonymous · 0⤊ 0⤋
My husband's cousin couldn't get a job because it showed up on his credit report--and that's how they do career history check. He got a loan from my in-laws to pay it off, and they hired him.
2006-09-21 12:21:37 · answer #6 · answered by Katyana 4 · 0⤊ 0⤋
They have many tactics they use, including holding up professional licenses, gaining federal employment, andit does shred your credit.
Long and short of it is to enroll in school, even if it is to take one course, your deferment reactivates.
2006-09-21 12:22:12 · answer #7 · answered by Frogface53 4 · 0⤊ 0⤋