What Happens If You Don’t Pay Off Your Student Loans?

Student debt has now surpassed 1 trillion dollars in the US. The high cost of education coupled with a rocky job market means that most students need to defer payments after graduation. How bad is defaulting on student loans? What happens when you just can’t pay them?

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Learn More:
3 Reasons to Never Default on Your Federal Student Loan

http://www.forbes.com/sites/moneywisewomen/2012/08/29/3-reasons-to-never-default-on-your-federal-student-loan/

“You went to college for four years and got your degree. If you’re like most Americans, you had to do it with a little help from Uncle Sam in the form of federal student loans.”

Don’t ignore your student loan payments or you’ll risk going into default

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

“If you don’t make your loan payments, you risk going into default.”

What Happens If I Ignore My Student Loans?

http://www.foxbusiness.com/personal-finance/2014/06/10/what-happens-if-ignore-my-student-loans/

“By some estimates, nearly one in three student loan borrowers in repayment are behind on their payments. Some of those borrowers may be paying as much as they can, when they can, but others may feel their debt is hopeless and are taking the ostrich approach instead.”

Your Federal Student Loans: Learn the Basics and Manage Your Debt

https://studentaid.ed.gov/sites/default/files/your-federal-student-loans.pdf

“If you don’t make payments for more than 270 days (except for Perkins Loans), your loan will go into default and your credit rating could suffer. If your credit rating is affected negatively, you may be denied future education or consumer loans, and you may not be able, for example, to obtain a mortgage, rent an apartment, buy a car, or secure employment.”

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25 thoughts on “What Happens If You Don’t Pay Off Your Student Loans?

  1. Student loans defaults are symptom of America’s backwards policies. At one
    time education was for the most part paid for by the state with some states
    offering free college education. St. Ronald of Reagan put a stop to this
    in California, he also put a stop to getting rid of student loan debt
    through bankruptcy. Now with our economy so bad that you damn near needed
    a college education to flip burgers at Burger King. Kids are forced into
    debt that they wouldn’t have had if just high school was good enough to get
    a job that makes living a middle class lifestyle possible as it did for my
    parents generation. All of these factors shifted the cost of education
    from the state to the parents and the kid themselves.
    In order for this to be fixed America needs to forgive all student loan
    debt and make college affordable or free to all citizens. We might not be
    able to bomb every country to oblivion anymore but I think that it is more
    than worth it and it pays for itself over time.

  2. Bottom line… college is just not worth it. Learn on your own and start
    your own business. Avoid debt at all costs.

  3. I fell sad for American students :(….poor bastards, you have to pay like
    10x as much as here in EU for pretty much the same degree

  4. I’ve never understood why employers run a credit check when hiring. ” Yes,
    I am bad with money, that’s why I need this job, and how does it affect
    you, my employer, in the first place?”

  5. This is just sad and pathetic, how can the government abuse those that want
    an education. Colleges are just like casinos, they prey on the ignorant and
    gullible. I have been in college for six years now, I can honestly say that
    going to class is a waste of time. I learn more on my own reading a
    previous edition book that costs 24$ instead of 157$. So if I buy used
    books from all the classes that I take I can get a 10,000$ + education a
    semester for around 100$ dollars. If I go to class the professor just
    mostly tells us to read the book and learn on our own so we can come
    prepared to review. It is just completely and utterly assinine that it
    borders on dark humor. Then the tests and the stress and the debt. So lemme
    sum up college for you: you pay about 6,000$ a semester to go to a boring
    class that the professor stresses you with deadlines, quizes, tests,
    midterms, finals and a bunch of other stuff. Then you have to buy a book
    for each class. Said book gets an update every so often, so previous books
    have to be replaced with new ones. You spend all your time cramming
    information into ypur head that you probably forget the next day. You buy
    the book but will probably only open it once or twice during the whole
    semester. You might pass the class (with a billion gray hairs), and finish
    school. Then you go find a job, but the job market is too saturated and
    your degree is useless because you needed other degrees. So you have all
    this debt and no money to pay it off, so what do you do. You find a minimum
    wage job and sppend the rest of your life paying for a stressful
    experience. So basically going to college is like paying money for people
    to help make you miserable. Ours is a truly wonderful world we live in
    (sigh).

  6. This is why I will have my children in Sweden. Education is *completely*
    free! Fuck the US, and the idea that a student needs to repay money is
    rubbish, and all stems from banking period! Get rid of all banks! Our
    society before them was just fine.

  7. It’s those fucking for-profit schools like Devry and ITT that are
    contributing the greatest to this problem.

  8. Why do americans borrow money for school? Are books for college really
    expensive in the US? My med school books are all over 4,500 MXN, about
    maybe 300 USD, and 2 books of mine are 12,000 MXN, like 800 USD. Are
    colleges in the US all private or have to pay a hefty fee? In my school I
    only pay literally 50 cents of a Mexican peso (0.3 cents in USD). For a
    full year. UNAM. and my university UNAM is the best in Mexico and in the
    top 5 of latin america, definteley not comparing Mexicos Universities with
    United States, the top Universites of the World are in the US but, why is
    college so expensive in the US? I have a friend thats from Panama and he is
    renting an apartment for 16,000 MXN (about 1,200 USD) a month. And food is
    relativity cheap in Mexico.

    And transportation, I spend 10 pesos every day to get on the Metro. Less
    than a dollar.

  9. “Thou shalt not default”… Commandment # XI. How about this one in your
    courts and college premises?

  10. what will happen to the US economy if people start defaulting on their
    loans? They say it is the next bubble. Can we get a video on that?

  11. Art degrees should be free. We have to spend a 1000 bucks a semester on
    supplies and have the hardest time finding a career when we’re out!

  12. I feel really lucky. I got an associates degree which cost me about
    $3,000. A few months before I graduated I got an internship at a local ISP
    and I was hired on as a full time network analyst a few months later with a
    good salary, health, and dental. As an added bonus, they offer tuition
    reimbursement so I can go on to get my bachelors without worrying so much
    about debt.

  13. America has been fucked since the end of the 60s. I think the Presidents
    back from the 80s and 70s should have thought before using those tax
    dollars on wars. If I was president back in 70s and 80s I would have not
    spended so much money on war and used it on Healthcare and Education. That
    would have changed the future for the better. I should study in more in
    Highschool, finish at an extremely good university, become a scientist, so
    I can invent a time machine to change the future. Anybody wanna help me
    build my time machine to change the future for the better?

  14. yeah evil socialism with free healthcare and free education ooh no i don’t
    want that!!!..But building an army (investing in it 2x more than the rest
    of the world combined/year) to **** the world up while the country
    crumbles: oooh yes bring the good stuff…

  15. There is no way that most students will pay their debt. If debt affects
    their tax return there will be less purchasing power and less spending.
    If the students can’t get a job because of bad credit there will be even
    LESS spending and consumers.
    Because there is less pending and consumers business don’t grow and there
    are fewer jobs. Which will lead many college graduates to jobs which don’t
    pay much, others just won’t find a job, which lead both not being able to
    pay for the loans…
    Because social security depend on the younger generation to get a job and
    pay their taxes to sustain the previous generation, but the new generation
    its unemployed and in debt they can’t pay for the old people.
    Which will lead USA to borrow more money from banks to pay benefits that
    the new generation can’t pay for because they are in debt to the same banks!
    They should have just pay for the fucking college!
    USA its over.

  16. america’s education system is ridiculously high. look at things like CNA

    CNA Training – A Quick Cost Breakdown

    Average Cost
    CNA Training Course
    $1100
    CNA Exam
    $115
    CNA Certification
    $50

    the costs are unrealistic for the bottom ring on the totem pole yet you are
    the one who works with patients every day hell there are times when you
    risk your own safty with mentally challenged patients with everything from
    confusion to violent mental disorders and you on average are paid minimum
    wage. I’ve worked for years as a CNA and grow sick watching McDonald
    employees make more than double my paychecks with me working 80 hours a
    schedule that is a two week interval. the costs are retarded. and more
    often than not you have no choice but to take out a loan unless your family
    is rich. another way for the U.S. to make sure the poor stay poor and the
    rich stay rich. we even have people running for leadership of the country
    to remove the middle class. sadly i almost hope this happens it may be the
    fuse that sparks the fat lazy people to get up and do something about how
    badly the country is falling away from a good place to live.

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