Like credit cards, car payments, and a mortgage, student loans carry serious consequences if payments go unsatisfied. Part of being an adult is paying back what you borrow, and unfortunately, student loans fall into that category even if they aren’t as much fun as owning a house or picking out a shiny new car. The financial damage has been done and now it’s time to pay it back.
You may be wondering, but what happens if I can’t pay back my student loans… Itâs important to remember that this type of debt will be viewed similarly to other types of debt you may acquire. It’s very important to ensure you can make your payments for the outstanding debt you owe, regardless of the other things you want in life. Set a budget and live within it. Defaulting on your student loans can bring serious consequences to your credit score and your financial situation in general. You may have to field calls from collections agencies and you’ll find you won’t be at peace whenever you think about money.
Besides the emotional worries and above-mentioned consequences, the Department of Education can also step in and help themselves to certain things that would normally be yours and yours alone. For example, if you are to receive a tax rebate, the Department of Education can step in and lay claims on that. They can also take your social security benefits or they may garnish your paycheck at your job. Those who default on student loans may also have to worry about being sued or losing their professional licensure if applicable. For these reasons alone it is wise to ensure you never fall behind on your student loan obligations!