Defaulting on Student Debt

Even if you fall into extreme financial hardship and file for bankruptcy, the student debt loan will not be exempted in bankruptcy. Falling into a default debt can lead you to have your wages garnisheed that is the borrower gets to take money out of your paycheck to make good on your debt.

If you have a student loan, no matter how financially stressed you are contact your borrower and let him know about your opinions. If the loan is from a government bank, then you have a variety of repayment plans which will reduce your monthly payments as well as student loan deferment and leniency during periods of economic difficulty.  

Not having four essential documents

These four documents are a must for a responsible estate planner.

· A will

· A revocable living trust

· An advance directive - The advance directive is a document which includes your medical intervention if your are unable to express those wishes yourself, along with a durable power of attorney for health care in which you designate the person who will advocate on your behalf to make those wishes known.

· A durable power of attorney for financial matters which includes the incapacity clauses. This allows a person of your choice to step in anf make financial decision on your behalf if you can’t make them yourself.