If you are affected by delinquent student loans, you are not alone. It truly is not surprising that there are so many people in this situation. What other loan can you get when you are unemployed and have no other means of repayment?
The good news is that there are many options available if you are having trouble paying your student loans. Keep in mind, that communication is critical, especially if you are just now falling behind.
If you have determined to comeback to school, or have recently experienced a major financial hardship, you may qualify for a deferment. Under this screenplay, the lender will agree to suspend your payments for a set period of time. Additionally, no interest will accumulate during this time.
If you don’t qualify for deferment, you may be able to go into forbearance. Interest will still accrue, but forbearance can help you eliminate or reduce your payment for a period of time.
For those just out of school, a graduated payment plan may be just what you need. This will permit you to make smaller payments now that will increase over time.
If your loans are already in default, you may have heard from one of the private collection agencies that the government has hired. If you have, you most likely know how ugly these collectors can be.
Here are key things you should know:
– Bankruptcy does not relieve you from student loan obligations
– Lenders know this and will almost never agree on a settlement.
– If you are due a tax refund, the lender will take this money.
Despite these negatives, there is a positive.
You may be able to rehabilitate your student loan. The government has a program in place that even permits you to liquidate the negative information from your file! The very first step to do this is contacting the lender and letting them know you wish to rehabilitate the loan.
Once you have made acceptable payment arrangements, you will need to make at least twelve payments on time. The delinquent history should be liquidated from your credit file once this is done. Regardless of your situation, there is hope! By understanding your options, you can understand which solution is best for you!