A student who has stopped repaying their personal loan indicates their account has defaulted. When a student deliberately stops making back their payments, it is regarded a strategic default.

In some cases a student may find that after several years of paying back their loan, the remaining balance hasn’t reduced very much. In some cases the outstanding balance in fact increases thanks to the high rate of interest.

This is why some students will look upon a strategic default. Sometimes there appears to be no other available alternative. This course of action is best matched to those who are going to be late on their payments. Nonetheless, it is something that more and more students are thinking about because of the extremely limited payment choices readily available to them.

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This choice to strategically default is one that should be taken seriously. No ethical consultant can advise you as to whether you have to travel down this route or not. The student needs to weigh up all the benefits and drawbacks first and foremost.

We have actually put together this handy infographic to help provide some help and advice that ought to ideally make your choice simpler.