Did you take educational loans during your post graduation? Are you again taking loans for your doctorate studies? You have failed to pay off the educational loans since you suddenly became bankrupt. Now the debt collectors are constantly calling you and harassing you. What will you do now? You need not get panic stricken and start banging your head. Student loan default is a common issue and most of the students face this situation. Defaulted student loan leads to bad credit score and it is like an ignominy. However, you need to concentrate on the repayment options.
With the economic downturn and economic crisis in the United States of America, many people are unemployed and as a result are applying for various loans. Due to financial disability most of the people are failing to pay off their past debts and are unable to clear their student loans. Since the year, 2007 defaulted students’ loans are gaining momentum and it has reached to an extent of 30%.
Be Careful of Any Loan You Have Taken
You should be very careful while paying off your educational loan. You should not take any loan lightly because student loan default is a serious situation. You should pay off the money within the stipulated period of time. Generally the delinquency period is nine successive months or 270 days. You should pay off the money to your money lenders within that period. If the delinquency period gets exceeded, the loan comes under default status. You should be very cautious and never let a delinquent loan become a defaulted student loan.
Negative Consequences
Defaulted student loans lead to various negative consequences. At first you tend to suffer from collection harassment and then you fail to achieve any financial assistance. Your wages get garnished by 15-20%. However you need to concentrate on the repayment options.
A Guide to Defaulted Student Loan Help
Contact your loan lender – You should contact your loan lender and ask for deferment. On request, the money lender also reduces your monthly installment. You can also contact a financial expert and choose the right loan rehabilitation program. The loan rehabilitation program depends on the status of your student loan. You should keep the record of your student loans that means all the necessary documents of your loans, so that you can show them to your money lender on demand. You can show evidence of which loan you are actually defaulting and thus you can clear them by gradual payments.
Merge your loans in a wise manner – If you take multiple student loans you can get your loans consolidated and make a single payment. It reduces the burden of your student loan. You can easily merge two single loans of low interest rate and thus pay them off with a single payment of high rate of interest. Loan consolidation is very beneficial particularly for those persons who have taken various loans and who have become defaulter of each and every loan.
Loan rehabilitation – This is another effective step of paying off your student loans. A loan rehabilitation program is very vital and it is totally a wise scheme of US Department of Education. The rehabilitation program is solely dependent of the status of your private loan and you get means to pay them off effectively and without any further trouble.
Defaulting student loans can be easily tackled by choosing one of these repayment options. In this manner you can become tension free and be safe. You can earn a good credit score and thus prevent yourself from shame and ignominy. Defaulted student loan help should always be sought and the repayment options save you from further harassment.