For many Tennessee residents, earning a college degree is an accomplishment that is tinged with a measure of anxiety. While statistics still show that people with a college education make more than those who choose a different path, there is also concern about a shifting job market and economic instability. Many students have to rely on student loans to pay for college, and repaying those loans can be a challenge as they search for gainful employment after graduation. For those who eventually default on their loans, wage garnishment is a real concern.
Defaulting on a student loan has a number of repercussions. The borrower's credit score will take a hit, and debt collectors can begin contacting the borrower, his or her parents, friends and even employers. Stress and anxiety builds, which can lead to a number of other concerns. However, it is possible to get control over student loan debt by taking a proactive approach.
Borrowers should begin by looking into income-based loan repayment options, which can structure student loan payments around the borrower's current income. Loan deferment is also an option and can temporarily pause loan obligations. For those who are willing to take a job in public service, there are special loan forgiveness programs that can eliminate a large portion of student loan debt.
In some cases, it is not the student loan payments themselves, but rather other types of consumer debt that is causing the financial strain. In such cases, Tennessee residents may want to look into other debt relief options, including personal bankruptcy. That path can lead to the elimination of many types of consumer debt and also stop wage garnishment. The resulting financial breathing room can help borrowers have the funds needed to keep their student loan payments current and cover the cost of living as they begin an entry-level job using their college degree.
Source: USA Today College, "How to avoid becoming one of the million Americans in student loan default", April 10, 2017