Student Loans And Credit Cards
When an individual stops making payments on his or her student loan, the student loan falls into default. Defaulted student loans have extreme consequences including credit report damage, wage garnishment and the inability to apply for new student loans until the defaulted loan is rehabilitated.
Student Loan Repayment Problems
Student loans benefit students by allowing them to pay for college more easily, but few students stop to consider that not only must student loans be repaid upon graduation, but they must be repaid with interest. Repayment grace periods are also typically very short. Students can expect to be given only six months or so after graduation before they must begin making payments.
In addition, many degree programs do not easily allow students to get entry level jobs with their degrees that provide a high enough income to comfortably allow for repayment of student loans- especially if the student paid for college solely with loans. The more money an individual borrows, the more he or she will have to pay back later.
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