«

»

If You Read One Article About Loans, Read This One

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’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 a few months later of your graduation, you will be soon making payments that you have never done before.

It is your student loans if there is one debt that you want to settle. Now, it has become your responsibility to do everything that you can do to settle your outstanding balance. Well the good thing is, you’re given with a grace period in not making payments however, the consequences could be brutal.

Like what I have said earlier, the consequences of not settling your loan could be flat brutal and 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.

There is a great possibility that your credit rating will also take a hit due to your non-payment of the loan. 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. Well that is, the lending institution whether the borrowed cash is for house or car will charge you with a higher rate of interest or perhaps, 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, having a proactive approach is the most preferred by many lending institutions. 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.