If you fail to pay your student loan, you probably won't find a team of armed U.S. marshals at your front door, as one Texas man did recently. But it's still a very bad idea to ignore that debt. In most respects, defaulting on a student loan has exactly the same consequences as failing to pay off a credit card. read more
Many people don’t want to pay collection agencies, perhaps because, other than ending debt collection calls, there’s no immediate benefit for paying off the debt. However, before you decide not to pay off a debt in collection, make sure you know the consequences of ditching the outstanding balance. read more
(For the record, the man says he thought he’d paid the debt, didn’t know about the arrest warrant and doesn’t remember the phone call.) But even this sorry story has a reasonably happy ending. Hauled into court at last, the man agreed to pay off his ancient student loan, plus accrued interest, at the rate of $200 a month. read more