The Importance of Paying Your Student Loans

You or someone you know may have recently graduated from college. Chances are you heard a motivational speech by a high-profile keynote speaker during the ceremony. One piece of advice that probably was not in that speech: pay your student loans.

If you graduated without debt from student loans, great. If not, be aware that defaulting on them will land you in hot water financially. Your credit score will drop dramatically, hurting your chances of getting a car loan or a mortgage. If you are looking for a job that involves budgeting or handling other peoples’ money, your potential employer is likely to check your credit before deciding whether or not to hire you. Even if you file for bankruptcy, you’ll probably still be liable for your student loans.

The bottom line: pay your student loans. Defaulting on them can hurt you in ways you might not have imagined before college. The sooner you pay them off, the better off you will be financially. You’ll probably be happier as well.