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

The consequences of defaulting on a private student loan in Washington are serious. When you default on a private student loan, the loan servicer or lender can sue you for the balance of the loan. If you are sued, the court may require that you pay back the loan in full, plus any interest and late fees. The lender can also take other actions to collect the debt, including reporting the account to a credit reporting agency, which can damage your credit score. You may have difficulty getting a loan or credit card, and future creditors will be able to see the negative information on your credit report. The lender may also garnish your wages if it obtains a court order to do so. This means that a portion of your paycheck will be taken directly out each month and sent to the lender until the loan is paid in full. If you are behind on payments, it is important to contact your lender as soon as possible to discuss your options. You may be able to work out a repayment plan or other solution to avoid defaulting on your private student loan and the serious consequences that come with it.

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

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