Hey guys, I’ve been thinking about my student loans and I’m curious, what’s the worst that could happen if I just straight up ignore them? How should I actually handle this situation?
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Ignoring your student loans will definitely impact your credit. They can garnish your wages if they see you’re earning money. The worst-case scenario is that this could haunt you for life, making it hard to buy a car, house, or anything else because your credit will be in ruins.
Even if you declare bankruptcy, student loans won’t disappear.
The best advice is to stop ignoring them right away. Visit studentaid.gov and enroll in a repayment plan that fits your budget, like an income-driven plan. It’s crucial to take action now to avoid worsening your financial situation later on.
I know it might not seem urgent now, but think about your future. Don’t let this drag on and affect important milestones like starting a family or business.
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I graduated in 2009 with a credit score of 709.
Initially, like many, I ignored my student loans. In 2010, the consequences caught up with me. You can see the sharp drop in my credit score on the left side of the chart, plummeting from 709 to 599 because I neglected my loans. After a brief recovery, I fell back into the same pattern of ignoring my loans, and once again, my credit score took another hit.
The turning point came when I faced reality and took my loans seriously. As you can see from the gradual increase on the chart after the second dip, I began to confront my financial responsibilities. Last month, after 14 years, I finally paid off my student loans. Today, my credit score stands at 816.
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That’s awesome to hear. I just wanted to say congratulations, and I hope you’re making the most of that impressive 816 credit score whether you’re looking into buying a house or treating yourself to a sleek new car with a manageable monthly payment that you can pay off in less than a year.