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