Arizona State Board Nail Technology Practice Exam

What is likely to happen if you do not pay your student loans?

1. You will graduate sooner

2. You may damage your credit score

3. You will miss out on client opportunities

4. You will lose your job

The correct answer is: You may damage your credit score

If you do not pay your student loans, one significant consequence is that you may damage your credit score. This is because lenders typically report missed payments to credit bureaus, which lowers your credit score. A damaged credit score can have long-lasting effects, including difficulties in obtaining future loans or credit, higher interest rates, or even challenges in renting a home. Maintaining a good credit score is essential for financial health, and timely repayment of loans is a critical factor in achieving this. The other outcomes listed, while potentially relevant in specific situations, are not direct results of failing to pay student loans. For instance, failing to make payments on loans does not influence your graduation timeline, and missing loan payments does not inherently mean you will lose job opportunities or your job itself. These aspects are more related to personal performance at work or in school, rather than the immediate financial repercussions of unpaid student loans.