Think Twice Before You Default on Your Student Loan

Cara Lanz
Think Twice Before You Default on Your Student Loan
Quick FYI: The companies and recommendations in this post contain sponsored links. Which means A Quarter Richer receives compensation or a commission. You can learn more about our Advertising Policies by visiting here. We are telling you this because honesty is the best policy.

Student loan debt has gotten out of hand.

Get this: over 44 million people in the U.S. owe a total of $1.5 trillion in student loan debt. This makes student loan debt the second-highest consumer debt category, with mortgage debt being the first. So, it’s no surprise that student loan delinquency rates are over 11% with over $101 billion in default.

So, when you’re just starting as a new graduate and are burdened with student loan debt, you’re not exactly set up for financial success. You’re behind the eight-ball from the very beginning. Kind of tough to see a bright future beyond the looming debt on the horizon.

Why You Shouldn’t Default on Your Student Loans

It’s tempting to close your eyes and pretend your student loan debt isn’t there. But now that you’re an adult, that isn’t an option, is it? You may know people who are choosing to go this route and letting their loans fall into default, but there are some compelling reasons not to do this: Lower Credit Score Starting into the world with your new degree and your whole life ahead of you is an exciting time. Don’t tarnish it with a poor credit score. It can end up biting you in more ways than you may realize like your ability to take out a mortgage or purchase a car. It may even affect your insurance rates and cell phone plans.

Acceleration

You may wonder what’s the worst that could happen when you default on your loans? [Acceleration] is one of them. This is when the entire unpaid balance of your loans becomes immediately due. As in, all of it.

Refunds Withheld, Wages Garnished

When you owe a creditor and don’t pay it back, they don’t mess around finding ways to get it. So they can withhold any tax refunds you have coming to you and garnish your wages.

Refinance Your Student Loans with Credible

When your student loan payments are a burden, and you’re faced with what may seem like impossible choices, know you can take control of your student loans by refinancing with Credible. Credible offers options to refinance both federal and private student loans with flexible payments and other options to meet your financial needs. And avoiding default isn’t the only reason to refinance your student loans. You can free up your financial life in all kinds of ways:

Pay Off Loans Faster

If you refinance your loans at a lower interest rate or a shorter loan term, you can pay off your loans faster and end up saving a lot of money in the long run.

Reduce Your Monthly Payment

When your monthly payments become unmanageable, refinancing may reduce your monthly payments and take away the burden of struggling to make ends meet every month. Reduce Interest Charges

Your [student loan interest rates}(https://trutrack.aquarterricher.com/click/1) may be sky-high. Getting your interest rates down is an excellent reason to refinance. First, there is no earthly reason to pay any more interest than you have to. Second, you will save a ton of money over the years. And third, read the first reason again.

Relieve Your Co-Signer

If you are like most college graduates with student loans, a parent or other trusted adult was a co-signer on your student loans. Which is a generous gift? But it’s time to cut the cords and relieve them of this burden. A co-signer is not required to refinance but may help you qualify.

Get Started with Credible

If you are ready to take control of your student loans, just fill out one simple form, and you will get personalized rates back from multiple lenders in just two minutes. And by the way, checking rates will not affect your credit score. From there, you choose the best option for you. Their Client Success Team is there to help you every step of the way.