What are the consequences of defaulting on student loans?

Defaulting on student loans can have serious consequences for Kansas residents. The most immediate consequence of not making payments on time is receiving late payments fees. These fees can add up quickly and can have a significant negative impact on a borrower’s credit score. Additionally, any missed payments can be reported to the credit bureaus, which can also negatively affect a borrower’s credit score. Borrowers could also have their wages garnished if they are in default on their student loans. This means that the lender will take a portion of their wages directly from their paycheck and pay it to the lender. This can often cause financial hardship for borrowers who are already struggling to make payments on their loans. Along with garnishing wages, borrowers could have their tax refunds taken away if they are in default on their student loans. This can be a large portion of a borrower’s income and can make it even more challenging to stay current on their student loans. Finally, borrowers may face legal implications if they do not make payments on their student loans. The lender may sue them for repayment and the court could issue a judgment against them. This can include additional fees and potentially a lien on their property or assets. Defaulting on student loans can have significant financial and legal consequences for borrowers, so it is important to stay current on all payments.

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What are the consequences of defaulting on student loans?

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