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’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. After walking off that stage and few months later, you’ll soon make payments like you’ve never before.
It is your student loans if there is one debt that you want to settle. Now, it becomes your responsibility to do whatever you can in order 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 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. Future borrowing will cost you more is what this meant. 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 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’ll be also eligible for liens and wage garnishments against your property and several other nasty arrangements.
In the event that you can’t make repayments after all your efforts, look to other options such as student loan forgiveness and let them know about your needs. By far, a proactive approach is what most lending institutions prefer. 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.