Student loan generally carries lenient terms and conditions regarding repayment. Such loan is saddled with most probably the lowest rate of interest in the market. In spite of these positives, some default in the student loans. You will be considered as a defaulter if and only if you fail to make payment of the loan for 270 days at a stretch. Remember that you can not wash your hands off repaying the defaulted student loans even if you file for bankruptcy. So, take care not to fail in making payment on time.
As a defaulter of the student loans, you may run into several problems. First and foremost of all, your credit record will no more be unblemished.Defaulted student loans will make a dent into it. Once you default on your dues, the credit bureau will place it in your credit record. Your 'defaulter' status will have a negative impact on your salary too, even you may have to experience income tax garnishment due to defaulted student loans. Your plight does not end with only financial penury. You will be under severe stress as the collection authority is all set to bite and bug you with its persisting effort to extract the dues. Flexible repayment option may slip out of your hand. The chance is great that you can not qualify for any loan in future until and unless the defaulted student loans are paid in full.
So spring into action as early as possible to avoid any hassle regarding the defaulted student loans in the later stage. Chalk out a proper plan to pay the loan back within the repayment schedules. Also take out the dossier of the loan agreement and go through it to refresh your memory. If you do this every month, there is no way you miss your monthly installment. Still, if you have failed to pay the loan back in time due to some unexpected financial hazards, ponder over loan consolidation program to ease your problem.