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LLC, all rights reserved.
STUDENT LOAN DEFAULT
Student loan default is a much more serious situation than mere delinquency. If your
payments are due monthly, and you fail to make your payments for a period of 270 days,
your loan is defaulted.
It is possible to recover from student loan default. It is possible to rehabilitate your
defaulted student loans. When a default occurs through ignorance – you moved, didn’t
receive your bills, didn’t know the loan was in repayment, spent the last nine months in a
coma – the payment of some of the arrears and the issuance of a forbearance to bring
the loan current will solve the problem. Of course you still have all those late pays on
your credit report, but at least the new reporting will show you current.
Or you can work with your lender to extend the repayment term, begin making on-time payments, and in one year your loan will be considered rehabilitated. Rehabilitated to the extent that you can now qualify for a home loan!
Ignoring a default is not an option. If your student loan payments are not current, you cannot
get another student loan should you decide to return to school. If your student loan payments are not current, your diploma, degree, or certificate may be withheld by the school. If your student loan defaults, you may lose your license to practice law or medicine or cosmetology
or dentistry or whatever it is you studied so hard to learn to do. If your student loan defaults,
the variable interest rate may be raised to the maximum allowable under your Master Promissory Note, and penalties of up to 25% of the original balance (no matter how much you’ve already paid) may be added to the principal balance of the loan. If your student loan defaults, you may be denied deferment or forbearance. And of course, if your student loan defaults, you will be receiving those annoying telephone calls from collection agencies. Take the calls. Someone is trying to help you. For more information on student loan default and its consequences, read “Surviving Your Student Loans”.
Student Loan Default:
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.
