If you fail to honor your obligation of paying back your student loans, then you will inevitably go into default. Once in default, your servicer/lender/guarantor can take the following measures in order to collect the unpaid student loan balance:
- Refer your case to a collection agency that will add a collection fee between 18% – 25%
- Garnish up to 15% of your earnings
- Withheld/offset your Income Tax Return.
If you think you are in default, speak with our Debt Relief Counselors immediately to get assistance!