New data shows that 11.3% of student loans were delinquent at the end of 2014 — double the rate just 10 years ago. Loans are considered delinquent when at least one payment is missed.
I get it — if I had to choose between keeping a roof over my head or keeping student lenders happy, the roof would win every time.
But ignoring your student loan bills can have serious long-term consequences.
Your credit score will tank. Once your payment is 45-90 days late, it will go on your credit report. There’s no easy to way to predict how much your credit score will drop. But trust me, it won’t be pretty. A low credit score will make it harder for you to get approved for new lines of credit. It can even make it hard to get a job.
You could wind up in default. If you miss payments for more than 270 days, your loan will move out of the delinquency phase and into default. Default is serious business. In most cases, once your loan goes into default, your lender will ask for the unpaid balance inRead More »from Money Minute: What happens if you don't pay your student loan bill?