What happens if you don't pay your student loans?

The clock is ticking for millions of Americans with student loans as repayment plans will soon begin for federal loan borrowers. But what happens if you can't afford to pay? That's the reality facing many people. And while several are anxious over the consequences of not paying their student loans, others have already made the decision that they simply aren't going to pay those bills once they restart.

Student loan interest will start accruing on September 1 and payments will restart in October. That means tough decisions for many borrowers, especially those in already-difficult financial situations. It might seem tempting to just continue not making payments, but the consequences can be severe, including a hit to your credit score and exclusion from future aid and benefits.


What happens if I don't make student loan payments?
Once payments restart in earnest, borrowers who can’t or don't pay risk delinquency and eventually default. That can badly hurt your credit rating and make you ineligible for additional aid and government benefits.

If you’re struggling to pay, advisers first encourage you to check if you qualify for an income-driven repayment plan, which determines your payments by looking at your expenses. You can see whether you qualify by visiting the Federal Student Aid website. If you've worked for a government agency or a non-profit organization, you could also be eligible for the Public Service Loan Forgiveness Program, which forgives student debt after 10 years.

Carolina Rodriguez, Director of the Education Debt Consumer Assistance Program at the Community Service Society of New York, emphasizes that anyone temporarily unemployed should be able to qualify for a $0 payment plan. And many others qualify based on income and family size.

“The repercussions of falling into delinquency can be pretty severe,” Rodriguez said. “The federal government can administratively intercept tax refunds and garnish wages. And it can affect Social Security, retirement, and disability benefits. Does it make financial sense at that point? Probably not.” #Money #Politics #StudentLoans

[alfonsosalinas]

She only owes $4, 000 and is acting like the world is ending. Also she had money to start a business, but not pay her student loans?
Cry me a river and go pay your debt.

[rockrasheed]

SHE ONLY OWES ABOUT 4000 AND CAN'T PAY IT

[TheChubbyd]

Not a rhino or a donkey, but I’m sick and tired of seeing our tax dollars going over sea. I’d rather see the money going to the pockets of Americans than wasting away on some war..

[kaykreatesbeautyartist]

Man they don’t pay us enough to pay our regular bills. Where are we going to “find” the money to pay this too? This is awful . If they truly want America to flourish or just function, tax the rich more, hold these greedy corporations more accountable, pay people living wages, and make housing actually affordable. The system isn’t working and if it’s not working no one benefits, the lower classes fund this country but if we don’t spend it falls apart. Like when covid happened companies truly took a hit . I hope to God we can get a positive outcome from this.

[Macil]

It shluld be illegal to issue the loans to people in the first place. An 18 year old couldnt get a loan for a $100, 000 car, why on earth would anyone allow these companies to issue loans to someone with no credit history or financial sense at just 18 years old? Save up money for a few years during/after high school and pay your way through college. Stop giving these idiots (the lenders) what they want! The law isn't in your favor. Just because little Billy can't be a dentist or a doctor or a lawyer out of high school or goto their favorite college they've idolized their entire life (for whatever ridiculous reason) isn't going to kill them. They'll get over it. Find a general labor job or something and save for a few years. Stop buying school with money you don't have!

[bradyhack]

These people are extremely stupid if they think they’re just ”NOT” gonna pay. They will take it one way or another and ruin your credit.

[pj]

Budget and live under ur means…not above it.

[mrs.carter]

I paid off $83k of student loans back in December 2018 over 3 yrs. The government didn’t give me financial freedom, I gave myself financial freedom.

[SzymczykProductions]

Lmfao you borrow X amount of money then say "not paying" thats theft rhey should be thrown in jail F these free loaders

[IrishMexican]

Imagine 45% of your paycheck being cut. If you eliminate student debt, you’d be wiping 45% of the US federal government income. Issues would become very dire for our nation.

[marie.s]

I am not eligible for any assistant program, I don't know why, and now just finished my degree. I made it! My student loan will be paid in full next year. Not waiting for forgiveness, I owe it, I just had to pay it back. That's it! No victimhood mentality! Yes I am a minority!

[Mavryck_Tha_Myghty]

“It’s out of my hands at this point.”

Hasn’t been out of your hands once. You just didn’t prepare for what was coming. It was predicable for those paying attention.

[ccloud]

You get to move in with mom and dad, cuz ur credit bad and u owe child support lol

[frankjones]

So ppl with their own business can't even pay them off? Smh

[Armyreaper]

You owe the money; just pay it. You signed up for the debt so it’s your responsibility. Now if you want to talk about interest rate and actual cost is one thing, but straight up refusing to payoff student loan debt for 3 years during interest free Covid times is crazy to me. Why are you playing a victim whenever you had a golden opportunity

[Rob]

Get another job or two.... Pay what you signed for.

[rl]

What are her minimum credit card payments each month, and if she didn't have them.would she be struggling?

People have had 3 years and treated ot like a vacation.

[jjshow]

Imagine if the Draft people with student loans first. Kinda scary but makes sense since they owe the government

[Tim-yq]

So she opened up a business before paying off a relatively minimal debt? Sorry, but she's not a particular sympathetic face of this issue.

[johnashton]

I know people who haven't paid their student loans.