Today we are running the seventh segment of the 15-part series on college-student-loan debt. (Thank you to onlinecolleges.net for putting this together.)
Penalties on loan defaults can be as high as 25% of the balance.
The loans that many students carry are already staggeringly high, but not paying the loans can make things even more financially dire. In some cases, penalties, interest, and debt collection charges can add up to as much as 25% of the balance of the original loan. These kinds of penalties can make it even harder for debtors to pay off student loans, adding thousands more to the balance.