Risks of Defaulting on Student Loans

As the cost of college tuition continues to rise across the country, students and their families are forced to borrow more money than ever before. Studies show that a majority of students at the nation’s universities have had to borrow money to cover some or all of their tuition and living expenses.

As the rate of borrowers rises, so too does the rate of default among the borrowing population. Many times, people are not aware of the unique set of circumstances that comes with defaulting on student loans. If you or a loved one is struggling with student loan debt, be sure to contact the Boston student loan default attorneys at the offices of Joshua Spirn & Associates by calling 800-975-5346.

Risks Associated with Student Loan Default

If your student loan falls into default, any of the following may occur:

• The Treasury Department may garnish any and all tax refunds to pay the debt.
• A percentage of your wages may be subject to federal wage garnishment.
• Additional collections fees may be added on top of your current debt.
• The Treasury Department may pursue legal action against you to settle the debt.
• The default will be reported to the major credit bureaus and your score will suffer.

Although filing for bankruptcy generally cannot eliminate student loan debts, bankruptcy may be able to relieve the other money pressures you may be facing, allowing you to rebuild your finances.

Contact a Boston Bankruptcy Lawyer

For more information on dealing with student loans and other debt obligations, please contact the Boston bankruptcy lawyers at Joshua Spirn & Associates by calling 800-975-5346 today.