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’s a fact, that burden of paying for your college debt is way, way greater than the stress and frustration of few weeks you spent preparing for finals. You’ll soon making payments like you have never done before after graduation and a few months later.
If there’s one debt that you want to settle, it is probably your student loans. It is now your responsibility to do whatever you can to settle the outstanding balance. Well the good thing is, you’re given with a grace period in not making payments however, the consequences could be brutal.
As what mentioned earlier, the consequences of disregarding your loan can be brutal and at the same time, life changing. It will start as low key however, missing your student loan repayment and you might soon start getting a letter and calls. But miss making second payment consecutively and rest assure to get phone calls and letters.
Because of your non-payment of the loan, there is a great chance as well that your credit rating will take a hit. In the event that you are 90 days late on your payment, you might want to expect your credit score will 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, many lending institutions prefer dealing with clients who have a proactive approach. 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.