|
A Consolidation Loan allows you to combine student loans
you received to finance your college education into a single loan.
Default
If you default, it means you failed to make payments on your
student loan according to the terms of your promissory note, the binding
legal
document you signed at the time you took out your loan. In other words,
you failed to make your loan payments as scheduled. Your school, the
financial institution that made or owns your loan, your loan guarantor,
and the federal government all can take action to recover the money
you owe. Here are some consequences of default:
- National credit bureaus
can be notified of your default, which will harm your credit rating,
making it hard to buy a car or a house.
- You would be ineligible
for additional federal student aid if you decided to return to school.
- Loan payments can be deducted from your paycheck.
- State and federal
income tax refunds can be withheld and applied toward the amount
you owe.
- You will have to pay late fees and collection costs on top
of what you already owe.
- You can be sued.
Obviously, you don’t want to let your loan
go into default. However, should this happen A Government Student
Loan may be the solution. Find out now!
|
