Over 100 students who attended the now-defunct for-profit Corinthian Colleges system are striking out against their former college and refusing to repay their student loans.
The students are attempting to pressure the government into forgiving their debt, alleging that the colleges didn’t hold up their end of the bargain–by providing a subpar education and not preparing them for a post-graduate career.
As we’ve explained, defaulting on your student loans has several consequences and could severely damage your credit score.
Of course, it’s best to avoid default by getting on the right student loan repayment plan for your situation and paying your loans on time. But if you’ve already defaulted on your loans, there is a way out.
This helpful video from Centsible Student explains what to do if you’ve defaulted on your loans and what options you have, including repayment plans and student loan consolidation.
According to the Department of Education, 7 million students in the U.S. defaulted on their college loans during the third quarter of 2014, with the average amount of loan default per borrower being $14,014.
As we’ve written previously, defaulting on your loans can have serious consequences–including damaged credit and having your wages garnished. And since student loans usually can’t be discharged in bankruptcy, many borrowers find themselves unable to repay their loans.
There are, however, ways to avoid succumbing to the peril of student loan debt and default. A recent CNBC article featured College Financing Group co-founder Rick Ross, who gave his advice about preventing student loans from taking over your life.
With outstanding student debt now topping $1.2 trillion, it’s extremely important for students to understand their repayment options and take advantage of relief programs to avoid defaulting on their student loans and hurting their credit. But according to ThinkProgress, students aren’t taking advantage of these programs. While one in eight student debtholders is in default, just three percent are enrolled in the income-based plans offered by the […]
What if you could walk away from all your student debt? That’s one of the more controversial ideas on the EDU Debtors Union wish list. The union believes students have very few options when it comes to repaying their loans, and mass defaults on student loans might be the only way to renegotiate debt repayment […]