With the increase of tuition fees almost every single year, it is not really a surprise to finish college together with 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. You’ll soon making payments like you have never done before after graduation and a few months later.
It is your student loans if there is one debt that you want to settle. 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.
Like what I have said earlier, the consequences of not settling your loan could be flat brutal and life changing. It will start as low key however, missing your student loan repayment and you might soon start getting a letter and 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. 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 this mean is, future borrowing is going to cost you even more. That is, the lending institution whether the amount borrowed is for house or car, will charge you with high interest rate 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. Here, it will be wise of you to 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.