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Anyone know what happens when your student loans default?

My dh got laid off (he has found some work but not enough to replace what he was making) and I barely make anything at my job and we are getting really behind in some bills. We are paying the neccesary ones, mortgage, utilities and such but my student loans are getting left behind. They are threatening to default and we have no money to give them. Does anyone know what this exactly means? I know it affects our credit, we aren't really concerned with that seeing that with everything happening our credit is down the tubes as it. I was just wondering what else it means.

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Anonymous

Asked by Anonymous at 5:05 PM on May. 4, 2009 in Money & Work

Answers (5)
  • after 270 days late they can go as far as Wage garnishment, tax-refund seizure. it will affect your credit but i don't believe that they report on a monthly basis but maybe every three months....nothing really serious will happen until 270 days late though

    Anonymous

    Answer by Anonymous at 5:16 PM on May. 4, 2009

  • Call and try to get a hardship deferral. STudent loans are one thing nothing will help you not even bankruptcy because they are government insured
    partiesbyjan

    Answer by partiesbyjan at 6:21 PM on May. 4, 2009

  • You can offer to send $5 a month and they cant do anything to you! I send in a small payment of $5 on months that I wasnt able to make the reg amount.
    SweetKYmom

    Answer by SweetKYmom at 6:31 PM on May. 4, 2009

  • I agree do a deferal,its a break offered.
    Chrystal_A

    Answer by Chrystal_A at 9:21 PM on May. 4, 2009

  • Call them and see if they can do a deferment...I had that done when I was in school...but I think as long as you send them anything like SweetKYmom said they can't threaten you.
    calliesmommie

    Answer by calliesmommie at 12:11 AM on May. 5, 2009

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