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 walking off that stage and few months later, you’ll soon make payments like you’ve never before.
If there’s one debt that you want to settle, it is probably your student loans. 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.
Just what I mentioned earlier, the consequences of not settling your loan may be brutal and also, life changing. It will start as low key however, missing your student loan repayment and you might soon start getting a letter and calls. Miss making the second payment consecutively and rest assure that you’re going to receive constant phone calls as well as 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 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, a proactive approach is what most lending institutions prefer. Here, it is smart that you 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.