Why You Should Never Ignore Your Student Loan Debt

Why You Should Never Ignore Your Student Loan Debt

Why You Should Never Ignore Your Student Loan Debt

So let’s chat for a moment about something that, for many of us, is a not-so-fun topic – student loan debt. You might be tempted to bury your head in the sand or toss those statements into a growing pile of ‘deal with it later’ mail.

But let me tell you something. Ignoring your student loan debt is a bit like ignoring that rattling noise in your car – it’s not going to fix itself, and if left unchecked, it can lead to some pretty hefty problems down the road. I’ve got your attention now, haven’t I?

Well, buckle up, buttercup. Here’s the nitty-gritty on why your student loan debt isn’t something that should be ignored.

9 reasons why you shouldn’t ignore your student loan debt

1. Your debt’s not going on vacation

Newsflash! Ignoring your debt doesn’t mean it packs its bags and heads off to Tahiti. No matter how much you want to, you can’t just wish it away. The balance will continue to grow due to that pesky thing called interest. More interest means more money you’ll have to repay eventually, thereby putting you into a worse financial position.

2. Damage to your credit score

Your credit score is like a trust meter for lenders. If it dips, your borrowing potential plummets with it. Student loans, like any other loans, need regular payments to keep that score looking fresh and healthy. Fail to do that, and you’ll find securing loans or credit cards down the line about as easy as nailing jello to a tree.

3. Wage garnishment is a real possibility

When we say ‘garnish,’ we’re not talking parsley on a plate. If you default on your student loans, your wages could be garnished. That means money taken straight out of your paycheck before it even hits your bank. Ouch!

4. You can forget about tax refunds

Love that annual tax refund? Not so fast. The government can seize it to cover unpaid student loan debt. Imagine the disappointment of waiting for that tax refund check only to find out it’s been intercepted to pay your debt. It’s like opening a present on your birthday and finding a pair of socks – it’s just not fun.

5. It can influence your career choices

Certain professions require clean financial records. Think law, finance, or government roles. Ignoring your student loan debt could limit your career choices. So, unless you fancy limiting your options and dodging your dream job, it’s best to keep on top of those payments.

6. Legal consequences aren’t a picnic

If you’re in default on your student loans, legal action could be taken against you. Being on the wrong side of a lawsuit doesn’t sound like a day at the beach, does it? Not only could it drain your wallet, but it could also cause immense emotional strain and even harm your reputation.

7. Say goodbye to cosigner relationships

Got a cosigner for your student loans? If you fail to make payments, the burden falls on them. And trust me, nothing says ‘let’s never talk again’ like dumping your massive student loan debt on a relative or friend.

8. Hurdles in getting further education

Ever thought of going back to school for another degree or specialized course? Defaulting on your existing student loans could make securing new ones tougher than a three-day-old bagel. So if you’ve got big educational dreams, don’t let defaulting be your downfall.

9. Potential loss of professional licenses

In some states, defaulting on student loans can lead to revocation of professional licenses. If you’re a doctor, lawyer, or teacher, that could be a career-ending move. It’s like training for a marathon and then deciding to sit on the couch on race day – a total waste of your hard-earned efforts.

Final thought

In a nutshell, ignoring your student loan debt is like ignoring a bear in your living room – it’s a big, hairy problem that won’t go away on its own. Taking steps to manage your debt can save you a world of stress and money.

There is a silver lining (several, actually). There are options available to help you manage your student loan debt. Refinancing, loan forgiveness programs, income-driven repayment plans – they’re all out there. But to take advantage of them, you need to face your debt, not ignore it. You got this!