What are the consequences of defaulting on student loans?

When a student in Pennsylvania defaults on a student loan, the consequences can be serious. Defaulting on a student loan means the borrower has failed to make loan payments according to the terms of the loan agreement. This default can lead to a number of financial consequences. The most obvious consequence of defaulting on student loans is that it can drastically impact your credit score. This will make other types of borrowing difficult, as lenders will view you as a high-risk borrower. The lower credit score can also cause difficulty when trying to rent a place to live, as many rental companies request credit checks. Additionally, defaulting on a student loan can result in having your wages garnished and your tax refunds seized. The lender can also take legal action against the borrower, which could result in a court battle and legal fees. In addition to these consequences, student loan debt cannot typically be discharged in bankruptcy. A borrower looking to declare bankruptcy must still make payments on any outstanding student loan debt. This means a defaulted student loan can remain a long-term financial albatross. Student loan debt can be difficult to manage, but it’s important to remember that defaulting on a loan is a serious issue and can have long-term financial consequences. It’s important to make payments on time and, if needed, contact the lender to arrange a repayment plan.

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What are the consequences of defaulting on student loans?

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