Which Of The Following Is Not True If You Default On A Student Loan?

Which Of The Following Is Not True If You Default On A Student Loan?

Defaulting on a student loan can have serious consequences for borrowers. It is important to understand the potential outcomes of defaulting on a loan in order to make informed decisions about repayment. One common misconception is that defaulting on a student loan will not affect a borrower’s credit score. However, this is not true. Defaulting on a student loan can have a significant negative impact on a borrower’s credit score, making it difficult to obtain future loans or credit cards.

Another misconception is that defaulting on a student loan will not result in legal action. In reality, lenders have the option to take legal action against borrowers who default on their loans. This can include wage garnishment, where a portion of a borrower’s wages are withheld to repay the loan, or even the possibility of a lawsuit. It is important for borrowers to be aware of their rights and responsibilities when it comes to student loan repayment to avoid these potential legal consequences.

✿ Learn More: Student Loan Basics Answers.

Dave Pennells

By Dave Pennells

Dave Pennells, MS, has contributed his expertise as a career consultant and training specialist across various fields for over 15 years. At City University of Seattle, he offers personal career counseling and conducts workshops focused on practical job search techniques, resume creation, and interview skills. With a Master of Science in Counseling, Pennells specializes in career consulting, conducting career assessments, guiding career transitions, and providing outplacement services. Her professional experience spans multiple sectors, including banking, retail, airlines, non-profit organizations, and the aerospace industry. Additionally, since 2001, he has been actively involved with the Career Development Association of Australia.