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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 is one thing that you should know, the stress and frustration of few weeks you spent preparing for finals is nothing to the burden of paying for your college debt. 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.

As what mentioned earlier, the consequences of disregarding your loan can be brutal and at the same time, life changing. It will start as low key however, missing your student loan repayment and you might soon start getting a letter and calls. On the other hand, it’s a different story when you missed making payments two times in a row because for sure, you’ll be receiving phone calls and letters.

There is a great possibility that your credit rating will also take a hit due to your non-payment of the loan. You better expect your credit score to have a big drop to as much as a hundred points in the event that you are 3 months late on your payment. Future borrowing will cost you more is what this meant. That is, the lending institution whether the amount borrowed is for house or car, will charge you with high interest rate or deny you credit if they figure out that you have poor credit rating.

Try not to pay loans for student for 9 months straight and you’ll go to what is called as delinquency. In the event that you have federal student loans, then the odds that you’ll be reported to debt collection agencies and the IRS as well is high. You will be eligible as well for liens and wage garnishments against your property and a number of 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 is smart that you set up a meeting if you can and meet someone in person. Inform them about your current financial situation and let them know that you’re struggling to make payments of your debt.

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