What are the consequences of defaulting on my student loans?

Defaulting on a student loan can have serious consequences in Kansas. If a borrower fails to make payments on their student loan, their loan may eventually become delinquent and then defaulted. Once a loan is in default, the lender can take legal action to recover the money that is owed. This could include actions such as wage garnishment, seizing of tax refunds, and even placing a lien on the borrower’s property. As a result, any wages or assets that the borrower has can be taken to pay off the defaulted loan. The borrower’s credit score will also take a dramatic hit after defaulting on their loan. With a lower credit score, a borrower could find it difficult to secure financing for future purchases, such as a car or home. Not only that, but it could also make it more difficult to rent a home or open new lines of credit, such as a credit card. In addition to the financial consequences of defaulting on a loan, having a loan in default can also have an impact on one’s professional life. Many employers consider a person’s creditworthiness when they make hiring decisions, and a defaulted loan can make one appear financially irresponsible. Furthermore, certain professional occupancies may require a clean credit check, which may be impossible if a person has defaulted on their loan. Therefore, it is important to repay student loans in a timely manner in order to avoid the harsh consequences of defaulting. If a borrower is struggling to make payments, there are options available that can help, so it is important to contact the loan servicer to discuss possible repayment plans.

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What are the consequences of defaulting on my student loans?

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