How To Pay For Your Student Loans?
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 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. It is now your responsibility to do whatever you can to settle the outstanding balance. Good thing is, there’s a grace period for those who like to avoid making these payments but, the consequences can be brutal.
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. Miss making the second payment consecutively and rest assure that you’re going to receive constant phone calls as well as letters.
Because of your non-payment of the loan, there is a great chance as well that your credit rating will take a hit. 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 this mean is, future borrowing is going to cost you even more. Well that is, the lending institution whether the borrowed cash is for house or car will charge you with a higher rate of interest or perhaps, deny you credit if they figure out that you have poor credit rating.
If you fail to pay loans for student for 9 months straight, then you will go to what’s 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.
Look to other options such as student loan forgiveness in case that you can’t make repayments after all your efforts and let them know about your needs. By far, having a proactive approach is the most preferred by many lending institutions. 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.