Did you take a student loan while you were in college and slowly you have become a defaulter? Has the period of your payment exceeded? Education is becoming expensive day by day. Many people desire for higher studies and for this they apply for educational loans. The worst thing happens when they fail to repay the loan. It is a massive ignominy on their credit report and on their career. Young adults suffer a lot when suddenly the collection agencies start chasing them and they might lose their house properties, cars if they possess and even fall prey to joblessness. Student loan default is a grave problem and results in negative consequences. However, there are repayment options available to graduates if they default on student loans. Let me share something with you. My friend once took an educational loan while he was pursuing his post graduate studies in management. He was doing his MBA from abroad. However, he became a defaulter of the student loan. The collection agencies disturbed him to such an extent that he even had to lose his job. He was working in a bank and the debt collector filed a suit against him. Gradually, he was filed with a court case, as a result of which he lost his job.
Significant points to remember A person becomes a defaulter of a student loan when he or she ultimately misses 270 days of grace period. Around 9 months are given to the person to make payment. If he misses it, suppose, if he forgets the date of payment, he comes into a default position and the collection agency makes his life hell. This is applicable for federal student loans. However the default period differs in case of private student loans. It starts as soon as some payments become delinquent. If you pay your money on a timely basis, it won’t be categorized as defaulted student loans. The actual default process takes a lot of months to commence for a private loan lender.
How to take preventive measures
In order to stop you from becoming a defaulter of student loans, preventive measures should be taken. Student loan default is a terrible condition and you need to take some steps to do away with it. The best way to save you from a default status is to make timely payments. If you know the exact date of your payment and start paying the loans on a monthly basis, you can never be a defaulter. If at all you have problems in making payments, you should discuss it with your loan lender. In such a case, the money lender will defer your payment date, or reduce your monthly payment, or will give you some payment options most suitable to you.
Some consequences you face
After becoming a defaulter, the collection agency starts calling you up at surprise moments and harass you. They might garnish your wages by 15 % from your salary check. I told you how my friend lost his job. They also file a case against you and make your life troublesome. Therefore, it’s better to pay off your student loan timely.
Author’s bio – The author, Jonathan Smith here asks you to follow some steps in order to prevent yourself from becoming a defaulter of student loan. You need to negotiate the Student loan default and he also shares his personal experience.