Another month, another student loan payment drains your bank account. The number barely seems to budge, but your budget feels the hit every single time. It is completely frustrating. A voice in your head might be screaming, “I’m done. I can’t do this anymore. Forget this.” That urge to just walk away is powerful. Despite how tempting it feels to stop, you don’t want to do that. Ignoring your private student loan debt is detrimental to your financial health. If you want to avoid some very scary realities, you must find a way to keep up. Instead of just quitting, we’ll give you some real-world tips on what to do when you feel you can’t make another payment. Your Credit Score Takes a Major Hit Your payment history is the biggest factor in your credit score. Once you miss a private student loan payment by 30 days, your lender will likely report it to the credit bureaus. This single action can cause your score to drop significantly. If you continue to miss payments, the damage gets worse. After 90 to 120 days of non-payment, your loan will enter default. A default is a massive negative event on your credit report […]
