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Blog > 2017 > January > How to Avoid Defaulting on Student Loans

How to Avoid Defaulting on Student Loans

January 9, 2017
Student Loan

The rate of defaults on student loans keeps rising every year as people often find it difficult to make payments because they cannot find a job or are underemployed. Fortunately, you can avoid defaulting on your student loans with careful planning before you enroll in school, by maintaining a budget when you’re in school and educating yourself about your loan terms and who owns your loans.

Choose Your School Carefully

To avoid defaulting on your student loans, you first need to carefully select the school at which you will study. If you do not like the school or struggle to keep up with your studies, you will be more likely to quit school, which makes you more likely to default on your loans. Instead of attending a school based on an emotional attachment or at the urging of a family member, do your research on colleges before applying to them.

Compare CostsFind Out Graduation RatesFind Out Income Expectations Post-GraduationRates for Repaying Loans

With this information, you should be able to make a wise choice in where you attend school and be less likely to default on your loan payments.While Attending School

It is easier than ever to apply for and be approved for student loans, which means you can run up quite a student loan bill. In addition, buying everyday items like snacks or coffee can add up to thousands of dollars while you’re at school, money that you could have saved to pay for your education. To help keep your expenses under control and help pay for college after graduation, you should set a budget and set aside a certain percentage of your earnings, if you work during the school year and/or during the summer.

By watching the amount of money you spend and saving a portion of your earnings, you could pay for some expenses out of pocket rather than take out a loan. For instance, you may earn enough on your summer job to pay for your books for at least one semester. Also, by keeping track of your expenses and staying on budget, you may be able to save enough to pay some of your tuition too.


A majority of former students who have defaulted on their loans never contacted their loan holder or they were often unaware of exactly what they owed and from whom they borrowed the money. Also, most defaulters never managed to make one payment toward their student loan debt. To avoid these issues, keep track of all of the paperwork you get for any student loans you take out, highlight the loan holder and keep them informed about where you’re living so you receive any notices or bills for your loans.

Get all of the information you can about your student loans and the repayment options you have for them. If you have trouble making payments, contact the loan holder to see if you can get the payment amount reduced. You can also contact SM Law Group for help.

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