Student loan debt help used to be one of the primary debt settlement departments for debt settlement companies. That all changed when the Obama Administration, under the Department of Education, took all government student loans “in house” so to speak, whereby debt settlement companies are no longer able to negotiate a discount with holders, as the government does not negotiate on these matters.
For the most current information on what programs are underway today, click on this link to the Department of Education’s student loan division.
This site has links to it such as:
- Understanding Repayment
- Loan Servicers
- Repayment Plans
- Income-Driven Plans
- Loan Consolidation
- Deferment and Forbearance
- Forgiveness, Cancellation, and Discharge
- Understanding Default
Student loan debt help is now a staple of our society as the boon to those students who are under the intense financial burden for loans, coupled with rising academic competitiveness and pressure of studies, continues to excel. Now more students can look towards higher studies and a promising career without the fear of large loans and repayment issues.
Student Loan Debt Repayment Options
Most student loan lenders will give you a grace period after graduation to allow you time to find that job you dreamed about. This is usually about six to nine months following the end of your education. However there are some lenders that will require you to start making repayment immediately. These types of student loans usually only require you to pay the interest only to begin with. This is why is critical to know what type of student loan(s) you have as well as a solid budget you can stick with.
If you are struggling to make payments, contact your loan service provider or the Department of Education right away. Do not bury your head in the sand and think that if you ignore the problem it will eventually go away. Just the opposite is true, which could have a major impact not only on your credit score, however with your future employment opportunities.
Military personnel may also qualify for a cancellation of a student loan(s), depending upon their military status and circumstances surrounding their hardship.
All student may be eligible for a loan modification, forbearance or deferment as well, depending upon the status and type of student loan(s).
Finally the Obama administration, and we are certain future Presidential Administrations, we always be looking to “tweak” the repayments processes of student loans, simply due to large drain they have become on the government over the past 5 years, due to non-repayments.
What Happens if I Default on My Student Loan Repayments?
If you are one of the select few, who through no fault of your own, happen to fall behind on your student debt loan(s), take heart. There are several things the lender/creditor can do.
For example, they could make the loan due and payable in full immediately. This obviously does not help the matter, as you are defaulting for a reason, usually because you do not have the money. Calling the loan due immediately does not solve the problem.
Secondly, the lender/creditor could turn your account over to a collection agency, or worse and an attorney’s office that specializes in collections! Here is where you start getting those threatening letters, etc.
In either event, you will begin to incur late charges, fees, possible higher interest rates, and of course the dreaded damage to your credit report. If you can figure out a way to make payments for 12 months straight, you also learn graces back. After you have made twelve student loan debt payments and received “rehabilitation” status, you will no longer be considered in default. Credit bureaus will then look favorably on you and eliminate the default record from your credit reports.
Again, find out who your loan service provider is first. Contact them up front and let them the particulars of your situation, and they should be willing to work with you on a favorable outcome.