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Ignoring student loans can damage your credit score, lead to wage garnishment, and accrueinterest and fees. Student loan debt in the United States stands at $1.727 trillion as of 2023. The repayment process may seem overwhelming if you’re among the more than 43 million borrowers with outstanding student loan debt.
The federal government is not making payments on student loan accounts, but rather suspending payments, which will extend the term of the loan. However, but due to the zero-interest provision through September 30, 2020, balances will not increase during this time. In total, the Act covers 88% of outstanding student loans.
Making late payments on your credit card accounts also means those balances will increase due to late fees, penalties, and additional accruedinterest. When to Get Professional Help Settling Your Debts? We work with consumers seeking debtconsolidation loans, or who may be considering options like debt negotiation or bankruptcy.
Some students could be concerned about how existing debts impact your credit score , but there are some other things that could make it easier to worry about such things. For instance, the federal government would be paying all or some of the accruedinterest on income-driven student loans.
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