How To Pay For Your Student Loans?
Due to the increase in tuition fees annually, it isn’t surprising to finish college with a boatload of debt. But here’s a fact, that burden of paying for your college debt is way, way greater than the stress and frustration of few weeks you spent preparing for finals. After walking off that stage and few months later, you’ll soon make payments like you’ve never before.
If there’s one debt that you want to settle, it is probably your student loans. 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 begins with somewhat low key but missing in your student loan repayment and you may soon start getting a letter and then calls. Miss making the second payment consecutively and rest assure that you’re going to receive constant phone calls as well as letters.
Also, there’s a possibility that your credit rating will take a hit because of 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. What is going to happen here is that, you’ll have a hard time when borrowing in the future. That is, the lending institution whether the borrowed amount is for a house or car, will charge you with high rate of interest 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. Say for example that you have federal student loans, the odds that you will be reported to debt collection agencies and the IRS as well is pretty high. You’ll be also eligible for liens and wage garnishments against your property and several other nasty arrangements.
In the event that you can’t make repayments after all your efforts, look to other options such as student loan forgiveness and let them know about your needs. By far, a proactive approach is what most lending institutions prefer. 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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