Student loans can feel like a maze. One missed payment can turn into wage garnishment, a hit to your credit score, or even tax refund offsets. The good news? There are clear steps you can take to stop the spiral and even get some debt wiped away.
First, the loan servicer will send a reminder. If you ignore it, they move the account to a collections team. That’s when the real trouble starts: your credit score drops, lenders see you as high risk, and the government can take a chunk of your paycheck. In the US and Canada, the timeline is usually 90 days to a few months before you see the first wage garnishment.
But you’re not powerless. Most lenders offer repayment assistance, income‑driven plans, or temporary forbearance if you can prove financial hardship. A quick call to your servicer can reset the clock and keep the worst consequences at bay.
One of the biggest myths is that debt just disappears after 25 years. In Canada, the 25‑year rule can indeed cancel the balance, but only if you meet strict income and filing requirements. In the US, Public Service Loan Forgiveness (PSLF) wipes out remaining debt after 120 qualifying payments while you work for a government or nonprofit employer.
There are also program‑specific options like Income‑Based Repayment (IBR) or the Canada Student Loan Forgiveness program for borrowers in certain provinces. Check the eligibility rules carefully – a small mistake on your paperwork can delay forgiveness for years.
Lastly, if you’re close to the forgiveness threshold, consider making a final lump‑sum payment to avoid extra interest. It often costs less than the remaining balance plus accrued interest.
Bottom line: don’t ignore a loan problem. Talk to your servicer, explore income‑driven plans, and see if you qualify for any forgiveness program. A little effort now can save you months of stress and thousands of pounds down the road.
Stay on top of your payments, track your progress toward forgiveness, and use the tools Saxon Financial Insights provides to keep your student debt under control.
Wondering what happens if you ignore your student loan payments? This article breaks down the domino effect—what kicks in when you miss payments, how it can mess with your credit, what lenders might do to get their money back, and what options you still have if you’re behind. Get the facts, bust the myths, and pick up practical tips to avoid digging a deeper hole.
Read More
Curious if student loans disappear after 20 years? This article answers that question, breaks down the rules, and clears up confusion about student loan forgiveness timelines. Find out who qualifies, which repayment plans count, and what happens at the end of the 20-year mark. Get real tips for tracking your forgiveness, avoiding pitfalls, and staying on top of the process. No jargon—just straight answers you can use right now.
Read More
Thinking about buying a $300,000 house but unsure if your income and student loans will let you? This article breaks down exactly how much money you'll need to make it happen, looking at how lenders check your income, debt (including student loans), and expenses. Find out what really affects how much house you can afford, why your student loan payments matter a lot, and get straightforward tips to boost your chances of qualifying. You'll also see some real numbers so you know what to expect. Everything you need to know, explained simply and honestly.
Read More
Wondering if student loans vanish from your credit report after seven years? Dive into the nitty-gritty of how student loan debt really works, and what happens to it over time. Explore the myths and facts about student debts and credit reports, and discover some tips on managing your loans effectively. Knowing the real deal can save you from financial surprises down the road.
Read More
In 2025, students graduating with a bachelor's degree often face daunting student loan debts. On average, this debt can range from $30,000 to over $40,000 depending on various factors including the type of institution. The soaring costs of education leave many graduates financially burdened and paying off loans for years. Knowing how to manage these debts is crucial for financial well-being. Here’s a closer look at the numbers and some strategies to tackle student loans.
Read More
The 20-year rule for student loans is a loan forgiveness program designed to alleviate the financial burden of long-term loan payments for borrowers. After making consistent payments for 20 years under a qualifying repayment plan, the remaining balance is forgiven. This rule aims to make higher education accessible by offering a clear endpoint to loan repayment. Exploring eligibility and the specifics of the repayment plans is crucial to benefiting from this program. Learn how this can impact your financial future.
Read More