What are the consequences of defaulting on a private student loan?

Defaulting on a private student loan in Oregon can have several serious consequences. First, the loan may become much more expensive. A lender may sue you and obtain a judgment to collect the amount you owe, which can lead to wage garnishment or a lien on your property. Also, your credit score could be adversely affected, making it more difficult to get other forms of credit in the future. In extreme cases, the lender may even take legal action against you, resulting in a criminal conviction. This may include a period of jail time, although this is usually reserved for cases where the amount owed is very large. It is important to take steps to avoid defaulting on private student loans, as the consequences can be severe. It is recommended that borrowers thoroughly check the terms of their loan and any repayment options that are available, such as deferment or forbearance. If borrowers cannot make a payment, they should contact their lender to discuss a potential resolution. Finally, borrowers should also consider seeking assistance from a financial adviser or credit counselor if they need help managing their student loan debt.

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What are the consequences of defaulting on a private student loan?

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