Investing in one’s education is part of what is expected of anyone living in a modern society.
Currently, it is not only expensive to afford a college education, but many Americans are struggling to pay off their student loan debt.
That said, the Obama administration has spared no effort in helping students to not only access college education, but also continue to everything possible to assist in relieving the burden of paying back their loans.
Consequently, the Department of Education has introduced a Pay As You Earn loan repayment plan where one does not have to pay more than ten percent of one’s income towards student loan repayment.
It is important to note, however, if one default on one’s loan, there are consequences.
One, it kills one’s credit report score.
Two, the debt will be eventually turned over to the Department of Justice for collection through litigation.
That said, going to prison for failure to pay is not an option. The fact is America hasn’t had debtors’ prisons for nearly two centuries, and one cannot be arrested simply for not paying one’s student loan.
The truth is if one falls behind in repayment, the Department of Education’s loan servicers will work assiduously to contact the individual who is off track on one’s payments.
During that time, servicers work to inform the borrower of his or her options to get back on track and to avoid the effects of defaulting.
Edited by Jesus Chan
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