Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Student Loan Repayment and other Student Loan topics.
The price you pay for defaulting on a student loan is a steep one. Simply put, it is not worth it. Failing to pay your student loans can severely impact your credit rating, damage that of your co-signer's if you used one, and put a lot of other things in jeopardy.
Some loans require collateral, meaning that these things can be taken as payment on a defaulted loan. Houses, cars, and other types of personal property would be at risk. The good news is that paying your loans on time can do just as much good for you as not paying them can do harm.
Strengthening your credit, building a good reputation with your banks, and not having your car towed are all a lot of fun. The benefits to be had from paying off your student loan debt is too great to risk the price of defaulting.
|Jennifer Mathes, Ph.D.|