Have You Defaulted On Student Loans?
Student loans can be a heavy financial burden, so it’s no wonder that so many people have difficulty paying them back. If you miss more than nine months of payments, you will officially enter default. Student loans are typically not dischargeable through bankruptcy, but our debt relief attorneys at Nicolet Law Office, S.C., can help you develop a strategy for reorganizing your finances that can free up the cash flow you need. We have multiple locations throughout Wisconsin, including Hudson and Eau Claire.
Consultations are always free.
What Happens If I Don’t Pay My Student Loans?
Not paying back your student loans has a variety of adverse consequences. These include:
- Wage Garnishment
If you do not pay on time, the government may deduct payments directly from your paycheck.
- Tax Penalties
The government may withhold your tax refund to pay off your student loans.
- Student Loan Ineligibility
If you have not paid existing student loans, you can become ineligible for future student loans.
- Damaged Credit
Defaulting on educational debt will lower your credit score significantly.
- Legal Consequences
The government may file a lawsuit against you to secure payment or take other legal action.
What Options Do I Have?
Many people who are struggling with student loan payments also have other debt as well. If this is your situation, the good news is that we may be able to reorganize or eliminate other kinds of debt to make your student loans more manageable. This could involve extending the payback period of your other loans, filing for bankruptcy or using other financial tools. Everyone’s situation is different, so our lawyers always do a thorough analysis to determine what makes the most sense for you.