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

Defaulting on a private student loan in Wisconsin can have serious consequences. When a borrower fails to make payments on a loan, it is considered to be in default. In this situation, the lender has the right to take legal action against the borrower to collect the money owed. The consequences of defaulting on a private student loan in Wisconsin include: 1. Immediate collection action. If a borrower defaults on a private student loan, the lender can take immediate action to collect the money owed. This could include filing a lawsuit, garnishing wages, or placing liens on property. 2. Damaged credit score. When a borrower defaults on a loan, it is reported to the credit bureaus and can have a damaging effect on the borrower’s credit score. A damaged credit score can affect the borrower’s ability to qualify for additional credit or a loan in the future. 3. Higher interest rates. Once a borrower defaults, the lender may increase the interest rate on the loan, making repayment more difficult. 4. Penalties and fees. When a borrower defaults, the lender may also charge additional fees and penalties. Defaulting on a private student loan can have serious consequences for borrowers in Wisconsin. It is important for borrowers to work with their lenders to ensure that they are able to make their payments on time and in full to avoid default.

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

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