3 ms·
Don't pay it and default. You'll only have to pay the income tax on the defaulted loan. It's not like you need credit anyways since almost no one in this gene
by WeAllDieByBan 11y ago
Don't pay it and default.
You'll only have to pay the income tax on the defaulted loan.
It's not like you need credit anyways since almost no one in this generation is going to be able to afford a house down payment.
- evanpw 11y agoIf it's a federal loan, the government will garnish your wages [1] and eventually your social security payments [2], and will withold any tax refunds. And since student loans usually can't be discharged in bankruptcy, you'll have bad credit for literally the rest of your life. Also, you pay income tax on forgiven loans, not defaulted ones. [1] https://studentaid.ed.gov/sa/repay-loans/default#consequences https://studentaid.ed.gov/sa/repay-loans/default#consequence... [2] http://money.cnn.com/2014/08/24/news/economy/social-security-student-debt/ http://money.cnn.com/2014/08/24/news/economy/social-security...