If your student loans are in default, the stress of dealing with collections agents, possible wage garnishment, and tax offsets can be enough to make you want to bury your head in the sand.But your situation can only get worse if you are not proactive and explore the options available to you.And that leads to even more debt and a damaged credit score.If you’re facing student loan default, you’re not alone. I was also broke and about ,000 in debt to the U. So, while I tried to figure out what career I wanted to pursue, I went back to serving to pay the rent.
And while that can certainly feel better momentarily, pretending for too long could lead to student loan default.
Often, we think we’re doing okay, but the financial house we’re building is just a house of cards.
One swift breeze and the entire thing could tumble down. The risk of defaulting on student loans increases if one or more of the following applies to you: If you’re experiencing any of these, don’t panic.
My income came entirely from the tips I made waiting tables.
It was barely enough to cover all of my expenses and instead of setting up a repayment schedule or requesting a financial hardship forbearance, I decided I would much rather just stop thinking about my loans. I won’t buy things I can’t afford to pay for entirely up front. I have no personal or consumer debt, so it was easy to ignore my one and only source of debt.