It is no secret that the cost of a college education is high. In fact, the cost of a college education is so high that most families can’t afford to pay the tuition out of their savings. Fortunately, a variety of student loans are available that allow most students the opportunity to go to college. These student loans are relatively easy to get. In fact, colleges have student aid offices that specialize in making sure that students get the loans and grants that they need to attend their institutions. The problem is that although student loans are easy to get into, they are very hard to get out of.
Today, student loan defaults are at an all-time high. Most people take out student loans in good faith, but upon graduation, they find themselves in a position where they can’t payback their loans. Way too often, many students graduate college only to find out that there are no jobs available for them. Unfortunately, many of these people are forced to take part-time jobs or they are working at low paying jobs just to survive. And they default on their student loans.
When you default on your student loans, a lot of bad things happen. Your credit score gets damaged and you are no longer eligible for any federal housing loans such as FHA loans. Additionally, your tax refunds will be seized and your wages will be garnished by the federal government. Carefully, evaluate your future job prospects before taking out any student loans.
Image: Bigstockphoto.com / mcfields