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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’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. It is now your responsibility to do whatever you can to settle the 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. 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.

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 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.

You’ll be in the case of what’s called as delinquency if you fail to pay loans for student for 9 months straight. 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 also be eligible for liens and wage garnishments against your property and various 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, having a proactive approach is the most preferred by many lending institutions. Here, it is smart that you set up a meeting if you can and meet someone in person. Make sure that you they will get to know of your financial situation and let them know that you’re struggling in trying to make repayments.