What happens to an unemployed individual who did not complete the school they had received loans to attend if they never make a payment on their student loans?

Unfortunatly, even though the schooling was never completed, you still owe all the monies borrowed. If you call the credit department of whichever financial institution provided you with the loan, you should be able to work out payment arrangements. If you don't try to work with the creditor, and just try to ignore the loan in hopes that it will go away, it won't.

Best to deal with it now, than to have collection agencies phoning all the time If you do not handle your school loans, it will appear on your credit report. You may also be blacklisted from receiving student loans in the future and your school may refuse to release your records so if a potential employer wants to see a transcript or if you decide to go to another school and you want to transfer your records, you may not be able to do so without a big hassle However, if you are unemployed the loan company may allow you to defer payments for a certain amount of time, especially if your loan is Federally subsidized. Interest will still accrue but you will be able to avoid having a black mark on your credit and alot of hassles when it comes to getting your records.

Call your loan company and see what they can work out for you, depending on how long it's been since you left school, you might be in better shape than you think. Most educational loans include a grace period to allow you time to find a job.

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