In the current scenario of jobs, only well-equipped individuals with higher degree in education are able to make a strong foothold. And every individual wants to get hooked to his/her dream job for which they need good amount of money as education today is very expensive. This is where student loans make an entry. It is possible to afford higher education or a professional course only if you borrow a loan.
The problem arises when you are not able to repay the loans in time. If you are unable to make any payment in 270 days time, it becomes a defaulted loan. The defaulted loan can bring plenty of problems to you which might lead your future into darkness. Some of these problems are:
- You lose credit worthiness as your report becomes poor with negativities.
- The poor credit report also acts as a barrier in borrowing a loan in future.
- You might have to face humiliations from collection agency.
- Educational department may take your tax and garnish your paycheck.
Thus, it is always recommended to repay the money in time so that one doesnâ€™t have to face dire consequences and your future is safe.
Some of the ways to get rid of this problem are cited below:
- Debt consolidation can be an option to get rid of defaulted loans. Here you are allowed to wind up your student loans into a single with different payment options. This new single loan will not be under the default status.
- If you are unable to consolidate your loan, you can also show hardships like unemployment or serious health issues. This might open to you some special repayment plans. However, you need to show evidence of these hardships like medical bills etc.
- You can also go for other repayment plans if your lender agrees. You can place an offer where you can convince him/her on a particular amount which you can afford. Make sure you are able to give the payments in time. Go through the paper work and complete all the necessary rules. Your term might increase but the burdened will be less.
These above mentioned ways may help you to get rid of defaulted student loans. In fact, there are experts who might assist you with defaulted loans. Also your credit report will be free from negativities. Therefore, as soon as you receive a default notice, donâ€™t delay and act on it as soon as possible.
In nutshell, try to make regular payments and if misfortune leads to defaulted loan opt for the above mentioned ways to eradicate it and make your future bright.
Author’s bio: Jonathan is an expert in the loan and finance sector. His articles are a great source of information for all those who want to know in depth regarding loans. There are also ways mentioned to fix defaulted student loans and other such problems.