Not only has the student loan debt industry reached all time highs, but the consequences of such a high balance is beginning to spread into many corners. For many these consequences will have a lasting negative impact on them and their families for years to come.
Credit Damage
Defaulting on your student loan can lead to serious consequences like credit damage and even wage garnishment. Missing even a single payment can be reported to the credit bureaus, leaving you with a lasting mark on your credit. If you are at risk of missing a payment contact your lender or a student loan lawyer to help you arrange a solution to stay current with your payments and avoid damaging your credit.
Loan Challenges
Not only can student loan debt hamper your ability to make ends meet, but it can even hinder your chances at future credit. If your student loan balance is too high in comparison to your income amount or you are delinquent in your payments, you could find it very difficult to get approved for other loans like a car or mortgage.
Family Burden
The consequences from an unpaid student loan debt can impact your family if something were to happen to you. Lenders often try to come after the estate of a deceased or insolvent borrower, especially when there is a cosigner involved. You can minimize this risk by having an insurance policy that can be given to the cosigner or spouse as beneficiary to cover the costs of any remaining debt balance.