Phoebe takes out a student loan to afford college. She expects to get a job after college that provides enough income to pay off the loan. What risk does she also have to think about?

Even if Phoebe expects to earn enough to repay her student loan, carrying that debt can affect her ability to borrow later. Lenders may consider her existing loan payments when deciding whether to approve other loans, such as a car loan or mortgage. A lender generally cannot take away her diploma or car simply because she has an unpaid student loan.

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