How To Pay For Your Student Loans?
It isn’t really surprising to finish college with boatload of debt due to the increase in tuition fees every year. But here is one thing that you should know, the stress and frustration of few weeks you spent preparing for finals is nothing to the burden of paying for your college debt. After walking off that stage and few months later, you’ll soon make payments like you’ve never before.
If there is one debt that you want to settle, it is no doubt your student loans. Now, it becomes your responsibility to do whatever you can in order to settle the outstanding balance. Fortunately, there is a grace period for you to avoid making payments however, the consequences can be very serious.
Just what I mentioned earlier, the consequences of not settling your loan may be brutal and also, life changing. It all starts with a low key reminders, but when you missed your student loan repayment, you will soon get a letter and calls. On the other hand, it’s a different story when you missed making payments two times in a row because for sure, you’ll be receiving phone calls and letters.
Because of your non-payment of the loan, there is a great chance as well that your credit rating will take a hit. In the event that you are 90 days late on your payment, you might want to expect your credit score will have a big drop to as much as a hundred points. 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. In case that you do have federal student loans, you have a high chance that you will be reported to debt collection agencies and the IRS as well. You will be eligible as well for liens and wage garnishments against your property and a number of other nasty arrangements.
Say for example that you can’t make repayments after all the efforts you have done, try other options similar to student loan forgiveness and let them know about your needs. By far, many lending institutions prefer dealing with clients who have a proactive approach. If you can meet someone in person, it will be wise of you to set up a meeting. Inform them about your current financial situation and let them know that you’re struggling to make payments of your debt.