Are you in the league of defaulters with student loan? Well, chances are high that a maximum of fresh graduates will answer the question with a yes. The reason of the rate of defaulters is rising globally – thanks to the ever-increasing costs that is tagged to pursuing higher education. Now, coming back to the question of Student Loans in Default – let me assure that you are not the only one in the line; the queue is indeed getting longer with each passing day. However, once found a defaulter, do not try to hide behind the four walls of your house rather come into the light and fight your way out of the defaults.
As we, all know that a number of defaulters choose the wrong way of saving from the hassles, which leads them to more trouble both financially and socially. The catch lies in fighting your way back, as soon as you receive the notice from your lender. Remember, the more you delay in the process, the more it will harm your credit score poorly. On arrival of the notice, you can consult a debt counseling service professional for advice on the Student Loans in Default, as it can have a negative impact on your life and career. Here is a look at the consequences that you might have to face being a defaulter –
- Damaged Credit score
- Litigation on a lawsuit
- Garnishments of the paychecks
- Restriction from further financial help
- Restriction on Social security benefit
Do not despair; you can still save your life and career from the negative impacts of being on a default. All, you need to do is to take the first step towards fighting the situation and consult a professional regarding the ways to avert the hassles. Consolidating the loan, which depends on some eligibility criteria, is one of the chosen options. This particular road to deferring the defaults is considered the most popular way, as it reduces the interest rate by making the path to clearing Student Loans in Default easier. Student loan forgiveness schemes might be another way out for a loan in default.