Consequences of Student Loan Default

Defaulting on your student loan has some expected consequences such as being reported to the Credit Bureaus, which will definitely impact your credit score negatively.

You may also find yourself impacted by any or all of these other situations:

• Your federal or state income tax refunds or other federal or state benefits will be used to reduce your loan balance.
• Collection fees and costs, court costs and attorney fees will be added to your loan.
• If you have a state professional license you may lose that license, or be

Reminder: Your Student Loans May Be Coming Due!

Did you just graduate from college in the Spring of this year (2013)?   If so, you are probably nearing the end of your grace period.   Your grace period is that six months (in most cases) that your lender allows you as a reprieve before you are required to start paying back your loan.   Well it is supposed to give you time to get a job, and