What Does Defaulting on Student Loan Debt Really Do to Your Credit

grad-250x187The ramifications of defaulting, or no longer making payments on your student loan debt, are well documented and sound overwhelming, to say the least. This includes garnishment of wages and affecting your credit score. But, what does becoming delinquent on student loan debt really do to a credit score? The answer is that it can be difficult to tell, and it frequently depends on the creditor as well as a number of other factors.

Credit Considerations

Generally speaking, the longer the student loan debt is delinquent, the more effect it will have on the overall credit score. But the intensity of the change in credit score may be different for two different people. Credit score takes a lot of things into account, such as length of credit history, how much other forms of credit are used, and even available credit to actual balance ratio.

Therefore, someone with a short or unimpressive credit score will probably feel the effects of not making student loan debt payments more than someone with a stronger credit history. That being said, no matter how great the credit history, default will cause some changes to occur in a credit score. It may not be as bad as another person’s, but it’s still inevitable.

Regardless, defaulting on student loan debt and receiving a bad credit score are not the end of the world. There are plenty of avenues to take that will allow you to bounce back from this situation better than ever. Talking to the right people and doing some research can certainly help put your mind at ease.

If a default has already occurred or it seems like it’s bound to happen in the near future, contact an Arizona bankruptcy lawyer as they are debt professionals and know how to get the default off of your credit history and start building good credit again.