The Devastating Consequences of Defaulting on Student Loans
Not paying back student loans can lead to serious problems. You may face high fees, damaged credit scores, and even wage garnishment. It can make it hard to get a job or buy a house. If you're struggling, consider options like the JAN Scholarship or talk to your lender. Remember it's important to address these issues early!
Hiding From the Problem Only Makes It Worse
This is a crucial point that many potential students and their parents don't fully understand. Student loan debt cannot be discharged in bankruptcy. Therefore, this debt will remain on your record until you die or pay it back. Let that sink in. Before you borrow $60,000 for one year's tuition, think long and hard about the consequences.
The Harsh Reality of Unavoidable Debt
Owning student loan debt is the absolute worst of all possible debts one could have. Even IRS debt is relatively better in this aspect. There are countless stories of people being forced to leave the country to get away from the incessant bill collectors and constant phone calls. This is why the efforts of President Biden to remedy the situation are so important and not just a political stunt to get votes.
A whole generation of young adults may never be able to buy a home, raise a family, or get married because of the effects of an unsustainable, impossible-to-pay-back student debt load. Modern-day debtors prison.
Proper safeguards were never implemented to prevent this from causing widespread harm. Banks, which were freed from the usual credit restraints of traditional lending because they were guaranteed to make a profit by the government, were only too willing to loan as much money as was possible. Children who were ill-prepared to understand the risks they were taking are the victims.
The Mirage of Immediate Satisfaction
When the loans go into default, they are sold to bill collection companies for pennies on the dollar and the bank is made whole by the government guarantee. Then the loans are resold again and again, and each new owner starts a new round of harassment so they can make their profit on your back. Zombie loans never die because no company has any incentive to negotiate or settle the debt.
Plan Your Strategy Wisely
If you're in this situation, the best strategy is to try to pay it off as quickly as possible if you're able. If that's not possible, then make the minimum payment possible for as long as possible. Banks won't put you in default as long as you are at least paying the interest on the loans. Ignoring everything and not paying is the worst strategy of all, as it will only invite more harassment. It's like being chased by zombies that will show up in your life whenever you feel like things are finally getting better. Don't do it!
Seek Legislative and Legal Relief
Pray for the laws to change and vote for candidates who will try to help in this process. There are no other options at the moment.