What are the Consequences If You Don’t Pay Student Loans?

According to the U.S. News’s annual survey, college graduates from the class of 2020 who took out student loans borrowed $37,584 on average.  

You are considered “delinquent,” and it will be reported to all 3 major credit bureaus. 

What Happens If You Don’t Pay Student Loans for 90 Days?

The good news is, you are not yet in “default,” and you can contact your lender to work out a plan to get back into good standing.

Your lender will put you in “collections,” which basically means that an agency will constantly call you and send you threatening letters to try to collect money. 

What Happens If You Don’t Pay Student Loans for 270 Days?

While that may not sound too terrible, it will certainly get worse. Particularly if you have a federal loan.

First and foremost, don’t just start skipping payments. 

What can I do if I’m having trouble keeping up with my student loan payments?

Contact your lender and let them know what’s going on. They will try to work with you. 

Swipe Up

for more finance, business, and real estate advice

Read More

When Does It Make Sense To Refinance Student Loans?

9 Unique Ways to Make Extra Money With a Tutoring Side Hustle