Importance of Debt Management
It is very important for you to manage your debt appropriately. If you enter into default on your student loans you will...
1. Lose your eligibility to receive federal financial aid in the future
2. Lose the ability to make payments on your loan, as the entire loan will be due in full
3. Risk incurring collection costs (up to 25% of your student loan)
4. Damage your credit history for up to seven years, which could prevent you from purchasing a car or a home
5. Risk garnishment of wages, which means your employer could be required to forward 15% of your wages to your lender
6. Risk losing income tax refunds, which could be withheld and forwarded to your lender