What Are the Worst Ways to Pay Off Tennessee Student Loans?

What Are the Worst Ways to Pay Off Tennessee Student Loans?

There are several ways you can effectively pay off student loans, but there are almost as many worst ways you can repay your Tennessee student loans. Avoiding these is paramount to protecting your finances and making sure your student loans do not fall into default, placing you close to bankruptcy. The last thing you want is for your credit score to plummet, which can happen with bankruptcy. However, it is not the end of the world if you find yourself slipping into bankruptcy. Talk to a Tennessee bankruptcy lawyer to explore your options.


One of the worst Tennessee student loan repayment methods to take is to miss payment deadlines and find yourself closer to defaulting on your student loans. Not only can this lead to being placed in a delinquency period, but this also increases your chances of the government seizing your financial assets to pay off the loan in full. For some people, this can quickly lead to bankruptcy and major financial losses.

Of college graduates who were paying off student loans, the former students who struggled the most with paying back their loans were the ones who defaulted on their loans. Whereas, graduate students with bachelor’s to master’s degrees did not tend to struggle with paying back their student loans as long as they were able to find the job their degree promised. The reason students who defaulted on their loans struggled more is because of the various financial challenges defaulting comes with.

Not only does defaulting mean you are forced to pay your student loans through your income or tax refunds, but this could also mean losing Social Security benefits when you are older. This can create a lot of financial strain on people, especially on people who dropped out of college and suffered lower wages as a result.


Tennessee student loan defaulting comes with a variety of financial consequences. This usually starts with someone being unable to make a student loan payment by a certain deadline, which places them in a delinquency period. What this delinquency period means you have failed to make a monthly payment by a certain date and you are on thin ice.

In other words, the more payments you fail to make in the delinquency period, the closer you come to defaulting your student loans. You only have nine months of missed payments before your loans fall into default. Default means your entire loan payment is due and the government can take actions to make this happen against your control. They can do this by drawing money from your income and tax refunds in addition to blocking your ability to be certified with certain licenses.


Repaying Tennessee student loans when your finances are low can be a challenging ordeal to overcome alone. Consider seeking guidance from our lawyers in Chattanooga, Tennessee, and North Georgia if you find yourself falling close to bankruptcy. Call Tom Bible Law at (423) 690-7712 to talk to a Bankruptcy attorney in Tennessee for a free consultation today. Our Tennessee bankruptcy attorneys are located in Chattanooga and Tullahoma. 

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