What happens if I default on my student loans from the Missouri Higher Education Loan Authority?

If an individual defaults on student loans from the Missouri Higher Education Loan Authority, several significant consequences may occur. Default occurs when a borrower fails to make payments for an extended period, typically around 270 days for federal loans. When a loan goes into default, the borrower will face immediate repercussions, including a substantial negative impact on their credit score. This can hinder the borrower's ability to obtain new credit, secure housing, or even gain employment in certain fields that require a credit check. In addition to the credit implications, the Missouri Higher Education Loan Authority may initiate collections efforts to recover the owed amounts. This can involve wage garnishment, where a portion of the borrower's paycheck is automatically deducted to repay the loan. Tax refunds and other government benefits may also be intercepted to settle the debt. Furthermore, the borrower may lose eligibility for federal financial aid and additional student loans. It is crucial to understand that defaulting does not erase the debt; rather, it can lead to increased amounts owed due to accumulated interest and fees. To avoid these consequences, it is advisable for borrowers facing financial difficulties to explore repayment options or deferment programs available through the Missouri Higher Education Loan Authority. For detailed information and guidance, the current web page may provide helpful resources regarding managing student loans effectively.