Defaulting on student loans has become an inevitability for a certain portion of borrowers. An Urban Institute report says, one million borrowers default each year, which is defined as not having made a payment in nearly a year. Around 40% are expected to default by 2023. Call your loan servicer to decide whether you will defer or have a forbearance. Keep abreast of how you can review options to consolidate your loan or participate in the loan forgiveness program. Defaulting on your loan is the worse possible choice since it will affect your credit report and credit score making it difficult to purchase a home or a car in the future. Defaulting will cause you to change your status to ‘high risk’ – where you will pay higher interest rates or premiums on insurance and consumer loans.
Rev. Dr. Donna Taylor is the Pastor of Andrew Chapel, United Methodist Church on the Northern Neck in Montross, VA. Rev. Dr. Taylor promotes best practices for financial literacy and financial empowerment in the church and leads workshops throughout Northern Virginia. Currently, she serves as the Chair of the District Finance Committee. In May 2015, Rev. Dr. Taylor received her Doctor of Ministry from Virginia University of Lynchburg in Lynchburg, VA. Rev. Dr. Donna Taylor is married to Dr. David Taylor, who is also the Director of our church-based free clinic. They have two adult children and three grandchildren. In her leisure time, Rev. Dr. Taylor enjoys traveling, jogging, weightlifting, swimming, yoga, and interior decorating. In May 2015, Rev. Dr. Taylor received her Doctor of Ministry from Virginia University of Lynchburg in Lynchburg, Virginia. Rev. Dr. Taylor was born and raised in New York City and recently discovered her ancestral roots in Guinea-Bissau, West Africa. Rev. Dr. Donna Taylor is married to David Taylor and they have a son and a daughter. Their daughter is a educator and son is an Active-Duty Senior Seaman in the Navy married with three children. In her leisure time, she enjoys traveling, reading, swimming, writing poetry, crocheting and spending time with her family.