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STUDENT LOAN DELINQUENCY
Student loan delinquency occurs when a payment is missed. There is no grace period
once you have entered repayment. PLUS loans go into repayment 60 days after
issuance. Perkins student loans go into repayment nine months after the student drops below half-time enrollment. Stafford student loans and Direct student loans go into repayment six months after the student drops below half-time enrollment.
The loans go into repayment whether or not you receive notice that your loans are in repayment. If you do not make your payment by the due date, it is delinquent. You don’t
get another grace period. Collection efforts by the lender begin immediately. If you
are sixty days late in making your payment, your lender will contact the guarantor on the
loan and collection efforts will begin on their part.
Although lenders have individual policies, it is common to report student loan delinquency to the credit bureaus when a loan becomes ninety days delinquent. Sallie Mae, one of the nation’s leading Stafford student loan lenders, lost a law suit a few years back because they failed to report to all credit bureaus, so the lenders have all set a policy and they adhere to it stringently. If you are delinquent of your student loans, it will show up on your credit report.
Because the lender must turn the file over to the guarantor when the loan becomes sixty days delinquent, student loan delinquencies appear on your credit report twice – once when the lender makes the report and once when the guarantor makes the report. Because most people have more than one disbursement, you may have eight or more loans being reported late from two different sources. Student loan delinquency is serious business.
And to make matter worse, those telephone calls are really annoying. Take them anyway, the collector is actually trying to offer you help. For more information about student loan delinquency, read “Surviving Your Student Loans”.
Student Loan Delinquency:
Student Loan Topics:
Master Promissory Note, Student Loan Deferment, Student Loan Forbearance, Student Loan Consolidation, Student Loan Discharge, Student Loan Grace Period, Subsidized
Student Loans, Unsubsidized Student Loans, Stafford Student
Loans, Perkins Student Loans, Direct Student Loans, PLUS
Student Loans, William G. Ford Student Loans, Student
Loan Delinquency, Student Loan Default, Student Loan Payment
Options, Student Loan Case Studies, Student Loan Management,Additional Reading Relating To Student Loans, How Do I Get A
Student Loan, How Do I Confirm the Status of my Student Loans, Why
Do I Owe Twice As Much As I Borrowed On My Student Loans, Pending
Changes Affecting Student Loans, Bankruptcy and Student Loans, Student Loans And Your Credit Report, Student Loans, Gifts.
