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If you default on your car loan, the bank can take your car. If you default on your mortgage, they can foreclose on your home. But you can't take back an education, so what are the consequences of defaulting on your student loan? They may be worse than you realized. 

If you are like 70% of students out there, you may need to borrow for college.

You may have heard in the news this week that a bill was passed to change federal student loan interest rates. Prior to July 1, 2013, the Federal Stafford Loan rate was set at 3.4% fixed for subsidized loans (loans under which the government pays the interest while the student is in school) and 6.8% for unsubsidized loans. PLUS Loans were set at a fixed rate of 7.9%. On July 1, the unsubsidized Stafford rate of 3.4% was set to increase to 6.8% if Congress did not act.