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

Defaulting on a private student loan in Virginia can have serious consequences for borrowers. When a borrower fails to make payments on a private student loan, the loan is considered to be in default. The lender then has the right to take action to collect on the loan. This can include taking the borrower to court to gain a judgment against them. Once the lender has a court judgment, the lender can take a range of steps to collect on the debt. This may include garnishing the borrower’s wages, attaching their bank accounts and other assets, and placing liens on their property. The lender can also report the defaulted loan to credit reporting agencies, which can damage the borrower’s credit score. Defaulting on a private student loan can also be costly. Depending on the terms of the loan, the borrower may be responsible for any attorney or court fees associated with collecting on the debt. The borrower may also have to pay additional fees and penalties, including late fees and collection costs. Even if the loan is discharged in bankruptcy, the borrower’s credit score will still be affected. Defaulting on a private student loan can have serious consequences for borrowers in Virginia. It can damage their credit scores, cost them money, and even cause them to lose property. Therefore, it is important for borrowers to keep up with their loan payments and not default on the loan.

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

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