Does settling student loan debt hurt your credit?
Plus, you’ll lose eligibility for student loan forgiveness programs, income-driven repayment plans, and new federal student aid. Finally, your name will be listed in CAIVRS and you won’t be able to borrow a mortgage from the federal government. So before you strategically default on federal student loans, make sure you know the consequences.
- negative credit reporting
- wage garnishment, bank account levy, and a lien placed on your home, but only if a student loan lawsuit is filed against you and the lender get’s a court judgment against you.
Settling student loan debt may hurt your credit and FICO score. Lenders understand that settlements happen after delinquency and default, and the settlement will be on your credit history for years to come.
The student loan balance will be zero on your credit report, but the status will show you settled the account for less than the full amount.
However, other options like a judgment or collection can have an even greater impact on your credit. And a student loan can’t be settled until you’re already in default, which is far more of a drag on your credit score.
This is one reason it’s essential to consider all of the factors in your individual case – and ask an expert click this link now.
How much money will I save by settling my student loan?
Savings for private student loan settlements vary greatly depending on the lender. Continua a leggere “Does settling student loan debt hurt your credit?” →
