Settle Your Student Loans After Learning About These Things
Due to the increase in tuition fees annually, it isn’t surprising to finish college with a boatload of debt. But here is one thing that you should know, the stress and frustration of few weeks you spent preparing for finals is nothing to the burden of paying for your college debt. You’ll soon making payments like you have never done before after graduation and a few months later.
It is your student loans if there is one debt that you want to settle. It is now your responsibility to do whatever you can to settle the outstanding balance. Fortunately, there is a grace period for you to avoid making payments however, the consequences can be very serious.
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. Miss making the second payment consecutively and rest assure that you’re going to receive constant phone calls as well as letters.
Because of your non-payment of the loan, there is a great chance as well that your credit rating will take a hit. 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 borrowed amount is for a house or car, will charge you with high rate of interest or deny you credit if they figure out that you have poor credit rating.
You’ll be in the case of what’s called as delinquency if you fail to pay loans for student for 9 months straight. In case that you do have federal student loans, you have a high chance that you will be reported to debt collection agencies and the IRS as well. You will be eligible as well for liens and wage garnishments against your property and a number of 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. Make sure that you they will get to know of your financial situation and let them know that you’re struggling in trying to make repayments.