Settle Your Student Loans After Learning About These Things
With the increase of tuition fees almost every single year, it is not really a surprise to finish college together with boatload of debt. 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. Now, it has become your responsibility to do everything that you can do to settle your 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. On the other hand, it’s a different story when you missed making payments two times in a row because for sure, you’ll be receiving phone calls and letters.
Also, there’s a possibility that your credit rating will take a hit because of your non-payment of the loan. You better expect your credit score to have a big drop to as much as a hundred points in the event that you are 3 months late on your payment. What this mean is, future borrowing is going to cost you even more. 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. In the event that you have federal student loans, then the odds that you’ll be reported to debt collection agencies and the IRS as well is high. You’ll be also eligible for liens and wage garnishments against your property and several 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, many lending institutions prefer dealing with clients who have a proactive approach. Here, it will be wise of you to set up a meeting if you can and meet someone in person. Be sure that you’ve informed them of your financial situation and let them know that you’re struggling to make repayments.