Teddy, you're in the 2%. Enjoy the ride.....next year will be an eye opener.....
So far YTD (and I know I need to make some changes on this, and some will come back to me), I've had over $16,000 withheld in Medicare, SS, Fed and State taxes.
Remember, Obama bragged about taking away student loans from big business (bankers) and now we have a student loan bubble.
It sounds like the student debt is not your problem but rather your lifestyle and financial situation because it appears as though you make enough to be able to bear down and pay off the student loans.
What are the consequences of default?
The consequences of default can be severe: The entire unpaid balance of your loan and any interest is immediately due and payable.
You lose eligibility for deferment, forbearance, and repayment plans.
You lose eligibility for additional federal student aid.
Your loan account is assigned to a collection agency.
The loan will be reported as delinquent to credit bureaus, damaging your credit rating. This will affect your ability to buy a car or house or to get a credit card.
Your federal and state taxes may be withheld through a tax offset. This means that the Internal Revenue Service can take your federal and state tax refund to collect any of your defaulted student loan debt.
Your student loan debt will increase because of the late fees, additional interest, court costs, collection fees, attorney’s fees, and any other costs associated with the collection process. Your employer (at the request of the federal government) can withhold money from your pay and send the money to the government. This process is called wage garnishment.
The loan holder can take legal action against you, and you may not be able to purchase or sell assets such as real estate.
Federal employees face the possibility of having 15% of their disposable pay offset by their employer toward repayment of their loan through Federal Salary Offset.
It will take years to reestablish your credit and recover from default.
Student loan debt is nearing $1 trillion and default rates are skyrocketing with taxpayers holding the bag