student loans with bad credit

71% of people who graduated from college in2012 have student loan debt. full disclosure, i have quite a lot. like, so much. the averagegraduate borrowed around $29,000. the total number of student loans owed in the us todayhas surpassed 1 trillion dollars with numbers rising every year. it’s reasonable to expectthat some if not many of those borrowers will have to default on their debt at some point.so, what will that look like? how bad is defaulting on your student loans? it’s pretty bad. most students use federalloans to pay for their education, and the federal government has many ways to get backits money. the treasury offset program allows the us department of the treasury to takeyour tax refund and give it directly to the

department of education to pay down your loan.they are also legally allowed to garnish up to about 15% your wages, which means takingmoney directly out of your paycheck. some states also allow private loan companies toseize your state tax refund in the same way. and if for some reason the federal governmentor a private company doesn’t think that any of these previous methods are quick enough,they can sue you for the full amount at any time. so, even if you default, the government andthese private companies are still going to get their money. and that is just the beginning. defaultingon any loan will have a negative effect on

your credit score, which will make it harderfor you to take out money in the future, to buy a house or a car, or start a business.it may even affect your chances of landing a job or an apartment. and there is no safety valve that can getyou out of student loan debt. bankruptcy cannot help you - even after you’ve liquidatedall of your assets to resolve your other debts, you still have to pay your student loans.so, you really shouldn’t default on your student loans. if you are unable to pay thembut they are not yet in default you have options. there are scenarios in which you can qualifyfor loan modification, deferment, or forgiveness. it’s always good to contact your lenderbefore defaulting on a loan, since working

with you to get their money back is in theirbest interest, and yours. with all of that said, if you have to borrowmoney for school, federal student loans are the best option, as far as affordability andcredibility are concerned. just make sure to work with them so that you don’t default. if you care about saving money and want tohelp the show. check out our sponsor ting. go to testtube.ting.com to see how much you’llsave on phone service. if you do that now, you'll get $25 off a new device or $25 inservice credit. there are no hidden ‘admin fees’ or sketchy charges. ting only chargesyou usage + $6 per device + tax each month. ting: mobile that makes sense.

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