With increasing crisis in the employment sector, a number of graduates are failing to comply with the monthly repayment structure of their student loan in time. The consequence? Increasing number of defaulters in the country. Well, non-repayment of student loans in time can certainly, never be owed to the single factor of dearth in employment. Other factors like, financial commitments and negligence towards the repayment also attributes to the rising number of defaulters in the country.Such negligence towards repayment can be attributed to the lack of knowledge on defaulting consequences. Therefore, these individuals end up suffering the maximum with defaulted student loans under their belt. However, like every other thing, a default on student loan if treated immediately can be avoided. If you find yourself unable to pay the monthly amount on time for consecutive months then, it is important for you to seek the advice of a financial expert or talk to your lender for a solution.
It is important that you remember that a default on student loan (federal loan) occurs only after a miss in payment for 270 consecutive days.
What is the Solution?
Prior to experiencing a defaulted student loans situation, you must go for loan deferment, as it is known to be a potential solution for recovering from debts and the default status. The idea focuses around the concept of postponing the monthly payment structure for a specific period. If you have trouble while, making the monthly payments, you must always seek for deferment from your lender.
A number of deferment options are available in the market and the economic hardship is considered one of the potential solutions to defaulted student loans. This particular solution is made available in one-year increment, if you get to prove of your hardship deferment with maximum documentation evidence. This deferment is also made available to individuals employed with Peace Corps or who are on federal or state assistance.People who are still in school, in military academy, or unemployed also holds the chance of qualifying for specific deferment options. It is essential for you to remember that prior to being a defaulter; you end up being a delinquent. This delinquency phase warns people with student debts about the misgivings and consequences alongside offering the debtors some time to fight the situation of defaulted student loans.However, it is to be remembered that delinquency can also lead to severe consequences, if the debtor with student loans fail to repay in time.