It can be overwhelming to figure out your next move after your active repayment plan is no longer feasible. Therefore, it is good to develop deeply rooted repayment habits that ensure your debts are cleared smoothly without any hindrance.
There are numerous consequences associated with your student loan entering a default state. Apart from your remaining balance becoming due, the following might also take place.
1. Becoming ineligible for other federal aids:
With your default student loan, you won’t qualify for other student loans or federal grants
2. Wage garnishment:
Basically, wage garnishment means a percentage of your income is deducted. For student loan defaulters, this percentage is used to pay off your loans.
3. Transcript being withheld:
Your learning institution can have the right to withhold your transcript, which complicates the process of getting into other schools or obtaining a job.
4. Credit reporting:
Your credit report can have some serious damages. The government can also decide to use some of your federal benefits to make up for the default student loan.
Sometimes, defaulting on a student loan can be inevitable, which is why we want to share some tips that will help you bring your student loan into good standing.
Once you’ve applied for a student loan and it becomes successful, your awareness to repay it should begin immediately. Some people choose to ignore repayment plans and that has never had positive results.
You should check the status of your student loans from time to time. If you monitor the progress of your repayment well enough, you will be able to determine whether or not the repayment plan is feasible and whether or not you should seek help.
Seek for help:
Discovering your active repayment plan is no longer an option can be disheartening. However, there are people that specialize in letting people just like you know about other alternatives that they can employ.
There are federal loan servicers and private loan officers. Both parties are willing to discuss other available repayment options with you.
Choose a more feasible alternative:
Do not rush into selecting another repayment strategy. The first one didn’t work out well so you should be careful in selecting the next. With each of the alternatives presented to you, determine which is most appropriate for you. Preferably, you should go for the option that allows you to pay the student loan while taking care of other bills too.
Any student loan you take has to be repaid. The consequences of default student loans, as mentioned earlier, are quite severe. Other than the tips mentioned above, we at F.H. Cann & Associates are here to help you by discussing various loan servicing solutions. Feel free to contact us.
F.H. Cann & Associates is one of the best providers of financial recovery options, loan servicing solutions, customer support, and Business Process Outsourcing plans in the nation. With over 20 years of experience, F.H. Cann & Associates is more than capable of rendering services to clients in various industries, such as healthcare, government, telecom, and commercial industries.