When You Don’t Pay Your Student Loans
Borrowers who fail to make a payment on time are considered delinquent on their loans. Delinquent student loans are trouble for both your current financial situation and your future credit! If You Don’t Pay Your Student Loans for 270 days Your status will become delinquent and get placed into a defaulted status.
Defaulting on student loan debt can have severe and long-lasting life consequences:
– The Department of Education can immediately demand repayment of the total loan amount due.
– The Department of Education will attempt to collect the debt and will charge collection costs.
And by the way, If you Don’t Pay Your Student Loans The Department of Education reports it to the national credit bureaus, damaging your credit ratings and making it difficult for you to make purchases such as cars, get a home mortgage or even rent an apartment later on in life.
– Borrowers with loans in default are ineligible for Title IV student aid (Taking out further student loans).
– Borrowers with loans in default are ineligible for deferments.
– The Internal Revenue Service can withhold borrowers’ Federal income tax refund, including your spouses’.
– Borrowers’ wages may be garnished up to 15% of the Gross. Gross, not net!
– Borrowers with defaulted Federal Family Education Loans (FFEL) or Direct Loan Program loans (DL) may be liable for collection costs incurred to collect the loans.
If the holder of the defaulted loan, which may be either the U.S. Department of Education or a guaranty agency, retains a collection agency to collect defaulted loans, charges imposed by the collection agency may be added to the amount borrowers owe.This means that the amount of the Student Loans may include collection costs of up to 18.5% of the principal and interest outstanding on the defaulted loan.
It’s Your Financial Fate – Don’t Wait
If you or someone you know is currently or soon to default, the time to act is now! There is now Government approved Relief Programs that can offer assistance to those in an economic hardship. You can get a second chance on paying back the loans, receive a lower, more affordable monthly student loan payment, even receive 100% Loan Forgiveness and/or Discharge upon approval.
However, the window for help is slim and needs to be sought out immediately in order to help.
Start by contacting Student Loan Guidance Group and speaking with a “Guidance Counselor” to see what options you have. No one should face this problem alone, so Call Now to Learn More and Apply Today!.
Source originally from http://financeequityloans.com