As of late there has been much speculation on how to fix our student loan debt crisis. Some have come to the conclusion that having a massive and collective student loan debt default movement is the answer to fixing our problem.
But those who oppose believe that a movement like this would not be a successful endeavor because no one would actually make the decision to default seeing as the consequences that arise afterwards are too harsh.
As mentioned previously student loan debts are the hardest loans to get rid of and if you decide to default there so many factors that could worsen your situation. One of the biggest and most intense repercussions is that the moment you default your pending balance is due all at once instantly. A burden you were so hopefully trying to get rid of all of a sudden comes knocking at your door at full force seemingly all the more worse and frightening.
A commenter on the NY Times, a “divorced mother of three in the late 1980’s”, defaulted on her loans and this is what she said regarding her experience in defaulting, “With default, penalties and interest continue to accrue; collection agencies hounded me relentlessly. I have never fully recovered. My debt is now over $25000 with penalties and interest.”
The moment your account goes into default you completely lose the privilege to be a part of any sort of payment plans, and to receive financial aid in the future. I’m not sure what’s worse if the fact that interest rates continue to pile up during default or that you run the risk of having a percentage of your paycheck withheld so that it then be distributed to your outstanding debt balance.
As a commenter on the website Quora said, “ Defaulting on student loans is emotionally draining — nobody wants to be characterized as a deadbeat.” The onset of new problems that arise when you default also affect your emotional state in the sense that your stress isn’t alleviated but instead intensified with the new repercussions that come with defaulting.
Those who oppose believe that the situation that defaulting your loans places you in is a much worse state to be in than if you didn’t default and that is why a massive movement of student debtors would never actually happen; people are all too aware of what happens if you do.