What are the 3 terrifying student loan horror stories?

One horror story is about a student who took out a large loan but couldn't find a well - paying job after graduation. The loan payments were so high that they had to move back in with their parents and still struggled to make ends meet. They were constantly stressed about the debt looming over them.

Often, after loan rehabilitation, students might find it difficult to get approved for new credit or loans because of the previous loan history. Also, they might struggle to meet other financial goals like buying a house or starting a business due to the burden of past debts.

Well, some of these stories might involve students getting scammed while taking out student loans. For example, there could be cases where the loan providers were not legitimate and the students were left with huge debts and no real education to show for it. Or perhaps a student got sick or had a family emergency during their studies and couldn't continue, but still had to pay back the full loan amount without any leniency from the lender. Another situation could be that the paperwork for the loan was so confusing that students unknowingly signed up for additional fees and charges that made their debt much worse.

One horror story is when students graduate with a huge amount of debt and can't find a job that pays enough to start paying it off. They end up in a cycle of debt and financial stress.

There are cases where the loan terms are very strict and confusing. Some lenders might have hidden fees. A student might think they are just paying back the principal and the stated interest, but then get hit with unexpected fees for things like early repayment or administrative costs. This can really throw off a student's financial planning.

There are students who had their loans mismanaged by the lending institutions. For instance, a student's payment records were miscalculated. They were constantly harassed by collection agencies for payments they had already made or for amounts that were incorrect. This not only affected their financial situation but also their mental health. They had to spend a great deal of time and effort trying to prove the errors and get their loan situation straightened out.

One horror story could be about a student who took out a large loan to study at a university. After graduation, they faced difficulties finding a well - paying job due to the economic situation. The interest on the loan kept piling up, and they were constantly harassed by debt collectors. They had to take on multiple part - time jobs just to make the minimum payments, which put a huge strain on their mental and physical health.

There was a case where a person defaulted on their student loan. As a result, their tax refunds were seized year after year. This not only caused financial stress but also made it difficult for them to get out of debt as they were counting on those refunds to pay off other debts or save for emergencies. Moreover, it affected their credit score severely, leading to higher interest rates on any future borrowing, like when they wanted to buy a car or a house.

There was a case where the cosigner's credit was severely damaged. The borrower was constantly late on loan payments. Even though the cosigner tried to remind the borrower, it didn't help. Since the cosigner was linked to the loan, their credit score dropped significantly. This affected the cosigner's ability to get their own loans for things like buying a car or a house in the future. It was really a horrible situation for the cosigner.

One horror story is that some students end up with huge debt and can't find high - paying jobs in law. They struggle to make the loan payments each month. For example, a friend graduated from law school with over $200,000 in loans. He got a job at a small firm but the salary was not enough to cover his living expenses and loan payments.