Loans and their repayment has always been something that concerned the adults and the working professionals. It was never considered as something that the students would have to bother about. With the change in the economy students are aligning more towards higher education in a bid to secure higher paying jobs. But higher education is becoming more and more expensive and education loans are becoming inevitable. Thus, even before the student can begin earning, he/she is neck-deep in debt.
Debts, no matter incurred by whom, are best repaid. All they bring is harassment. So, whenever you plan on taking a loan, decide how you will repay it. The same goes for student loans. Defaults of student loan are more likely to occur than any other kind of loan as the students are young and do not realize the implications of a defaulted loan. The following are some of the reasons to show how an unpaid student loan can destroy the future financial condition of the students.
* Inability to receive any further loans or credit cards
* Wage garnishment
* Interception of social security benefits
* Income tax refunds may also be intercepted
* Getting sued for an interminable period
So, a default of student loan is the last thing that a fresh graduate student wants. Therefore, it is best to take some preventive measures before it is too late.
* Keep the loan amount to a minimum
* Begin the repayments as soon as possible
* Go for a repayment plan that will suit your pocket and your expected salary
Once you complete your graduation and secure a job, you should begin the repayments. In case, you change your residence, let the lender know so that you receive the bills on time. If you have any problem in paying the money back, then it is best to let the lending institution know. They all want their money back and they try to enable you, in any way that they can, to pay it back. There are several schemes and plans that you can consider to get out of a defaulted student loan.
* Delinquency: If it is a federal loan, then you can apply for a delinquency period. It is a relief period of 9months or 270 days that the federal government allows you before you have to begin the payments.
* Consolidation: if you have more than one outstanding loan, then you can go for loan consolidation. This will allow you to pay one consolidated installment each month instead of one for each loan.
* Extension: If you do not earn much, then paying a huge amount of money towards your loan repayment is not an option for you. So, you can apply for extension. This will allow you to pay small amount of money for a longer period of time.
The author, Jonathan James writes blogs and articles about student loans. Here he tells us how we can save ourselves from the consequences of defaulted student loans by planning early and paying on time.
I'm Louida from Atlanta, Georgia and I'm a mother of two daughters, blogger, and full time working mom at a Business Consulting Firm.
I love helping others learn how to start working from home on the internet free to supplement their current income.
I also blog at Productreviewmom.com
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