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Marcus HYSA rate cut down to 2.0% :(
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What will be in hand?
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Depends how far behind. Eventually it can lead to a judgement against you and wage garnishment. Getting a judgement against you is very, very bad.
Yea, having a judgment against you isn't something you want to do. That being said, I don't know how quickly this would happen. It would have to go to collections for quite a while, and then probably a negotiated settlement, before this happened
Bad credit. Goodbye 700 credit score.
Correct, once you get 90 days behind.
Right now federal loans aren’t reporting late payments for 12 months. Eventually if you don’t pay them they will be charged off and remain on your credit report for 7 years as bad debt. If you were going to get tax returns the gov will likely keep it to pay toward your balance. You also won’t qualify for any sort of government backed loan with federal student loans in bad standing (example- VA or FHA mortgage).
Late payments on private loans can be worse. The big companies will take you to court, and it will kill your credit for a very long time.
I've heard of someone recently who had federal loans go into collections, and then she went to court over it and got them completely written off. She must have had to file bankruptcy and taken a huge hit to her credit score, but she doesn't talk about that part and seems to be fine with it. Would not recommend though!!