Many people that hold a professional license, not just in the beauty field, but many others don’t really understand the ramifications that could occur if they default on their student loans. A few things you should be aware of if you decide you aren’t going to pay them. If you file bankruptcy, you can’t include your student loan, you must still pay it.
- You’ll be ineligible for deferments.
- Subsidized interest benefits will be denied.
- You may not be able to renew a professional license you hold.
- A lien can be put against any property you own.
- Your loans may be turned over to a collection agency.
- You’ll be liable for the costs associated with collecting your loan, including court costs and attorney fees.
- You can be sued for the entire amount of your loan.
- Your wages could be garnished. (15% of the borrower’s take-home pay.)
- Your federal and state income tax refunds may be intercepted.
- The federal government may withhold part of your Social Security benefit payments.
- Your defaulted loans will appear on your credit record, making it difficult for you to obtain an auto loan, mortgage, or even credit cards. A bad credit record can also harm your ability to find a job.
- You won’t receive any more federal financial aid until you repay the loan in full or make arrangements to repay what you already owe and make at least six consecutive, on-time, monthly payments. (You will also be ineligible for assistance under most federal benefit programs.)
At this point in my life I still owe 1,600 dollars and for every 100 dollars I pay only 65 goes toward the principle. Interest rates are ridiculous and as soon as possible I am going to pay the dang thing off, hopefully by the beginning of the year. I owe very little compared to many and just because I’m not practicing right now doesn’t mean I want to lose what I worked so hard for.
My daughter-in-law owes 40,000 dollars for her schooling and she was under the impression that because she worked hard for that (nurse) license it was hers forever regardless of what ever happens. I tried to explain to her that it isn’t so, but DIL’s have a way of thinking they are right about everything so I told her to get verification if she didn’t want to believe me.
There is much information out there so make sure you read it and know how you can rectify the situation if you are in default.
I am pursuing a nursing career due to the wide variety of fields and the possibility of advancement, and also the many job openings.
But since I am paying for school on my own, I am terrified of ever defaulting on a loan or struggling in fear that all of this effort and schooling and money will be lost for nothing.
My DIL makes 50 dollars an hour as a traveling nurse, she works for an agency, but she just had a baby in August and hasn’t been back yet. Like I said she still owes 40 thousand dollars and if she doesn’t start paying soon she will go into default and it doesn’t matter how hard you worked for that license, it doesn’t actually belong to you.