The Beginners Guide To Lenders (Getting Started 101)

Settle Your Student Loans After Learning About These Things

It isn’t really surprising to finish college with boatload of debt due to the increase in tuition fees every year. But here is a fact of life, the burden of trying to pay for your college debt is drastically greater compared to the stress and frustration of few weeks you spent preparing for finals. After a few months later of your graduation, you will be soon making payments that you have never done before.

If there is one debt that you want to settle, it is no doubt your student loans. It is now your responsibility to do whatever you can to settle the outstanding balance. Good thing is, there’s a grace period for those who like to avoid making these payments but, the consequences can be brutal.

As what mentioned earlier, the consequences of disregarding your loan can be brutal and at the same time, life changing. It begins with somewhat low key but missing in your student loan repayment and you may soon start getting a letter and then calls. But miss making second payment consecutively and rest assure to get phone calls and letters.

There is a great possibility that your credit rating will also take a hit due to your non-payment of the loan. Say for example that you’re 3 months late on payment, then you better expect your credit score to have a big drop to as much as a hundred points. What is going to happen here is that, you’ll have a hard time when borrowing in the future. That is, the lending institution whether the amount borrowed is for house or car, will charge you with high interest rate or deny you credit if they figure out that you have poor credit rating.

If you fail to pay loans for student for 9 months straight, then you will go to what’s called as delinquency. Say for example that you have federal student loans, the odds that you will be reported to debt collection agencies and the IRS as well is pretty high. You will also be eligible for liens and wage garnishments against your property and various other nasty arrangements.

Look to other options such as student loan forgiveness in case that you can’t make repayments after all your efforts and let them know about your needs. By far, having a proactive approach is the most preferred by many lending institutions. If you can meet someone in person, it will be wise of you to set up a meeting. Be sure that you’ve informed them of your financial situation and let them know that you’re struggling to make repayments.