A student who has stopped paying back their personal loan means their account has defaulted. When a student purposefully stops their payments, it is regarded as a strategic default. Sometimes a student might discover that after many years of repaying their loan, the remaining balance hasn’t decreased greatly. Often the unsettled balance in fact increases thanks to the high rates of interest. This is why some students will consider a strategic default. Often there appears to be no other attainable option.
This course of action is best suited to those who are likely going to be late on their payments. Nevertheless, it is something that increasingly more students are thinking about because of the really limited payment options available to them. This decision to strategically default is one that should be taken very seriously. No ethical specialist can advise you as to whether you should proceed down this route or otherwise. The student needs to consider all the benefits and drawbacks before anything else. We have assembled this practical infographic to help offer some information that should hopefully make your choice much easier.
Infographic Source: https://www.mycreditcounselor.net/should-i-strategically-default-to-settle-private-student-loans/
