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...

  • Lose your eligibility to receive federal financial aid in the future

  • Lose the ability to make payments on your loan, as the entire loan will be due in full

  • Risk incurring collection costs (up to 25% of your student loan)

  • Damage your credit history for up to seven years, which could prevent you from purchasing a car or a home

  • Risk garnishment of wages, which means your employer could be required to forward 15% of your wages to your lender

  • Risk losing income tax refunds, which could be withheld and forwarded to your lender