Some Ghanaian students fail to repay their students loan as required. Whiles some may do that deliberately, it is not the case for others. A handful of Ghanaian students do not find gainful jobs to enable them make payment as required. In any case, once the moratorium of your students loan expires, you should by any means necessary try to repay your loan to avoid future consequences. failure may result in the following consequences:
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1. Accrued Interest and Penalties
Missed payments result in additional interest and penalties. The longer the loan remains unpaid, the more the debt increases, creating a heavier financial burden over time.
2. Credit Damage
Defaulting negatively impacts your credit record, making it harder to secure loans, mortgages, or other financial services in the future, as lenders will view you as a high-risk borrower.
3. Salary Deductions
The SLTF can work with your employer to automatically deduct loan payments from your salary until the debt is fully repaid, limiting your monthly disposable income.
4. Legal Action
Continued default can result in court summons or legal action. You could be ordered to repay the loan immediately, with the possibility of wage garnishment or even asset seizure.
5. Travel Restrictions
In extreme cases, defaulters may face travel restrictions, with authorities preventing international travel until the loan is settled.
6. Publication of Name
SLTF can publish the names of defaulters on their website, damaging your reputation. This public disclosure can cause embarrassment and impact your personal and professional standing.
7. Ineligibility for Further Loans
If you default on your loan, you may be disqualified from applying for additional student loans or other government-backed financial assistance.
