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

Source: https://studentaid.ed.gov/sa/repay-loans/default