Student loan debt can make the joy of college graduation and life changes after that less enjoyable. It can be very difficult when you owe thousands of dollars in education student loan and the job that you have isn’t paying enough to cover all your living expenses and the payments required on your education loan.
Many newly graduated college students find it difficult paying back their loans and do default on the loan. As a result they begin their working career with bad credit due to defaulting on their loan. If you don’t want this to happen to you it is important that you find many ways to pay off the loan and to prevent default on the loan.
Student Loan Debt Relief Options
There are several options for relieving your debt. You need to decide what type of loan you borrow and what options are available to you first. This can help you develop a financial plan and make sure that you don’t default on the loan repayments.
- Depending on the type of loan you have a grace period of 6 to 9 months after you graduate or stop with your education. During this grace period you will need to find a job to help make the payments. Some loans will need you to make interest payments immediately where others will allow you to pay the interest over the term of the repayments.
- Alternatively, you may want to contact your lenders or creditors and ask a loan drop. Depending on the type of loans you borrow this can be the best solution to consolidate your student loans. If you fail to seek student loan consolidation, then you are at risk of lawsuits and possibly of risking wage garnishes.
- You can also ask for a cancellation on the loans if you suffered from an accident or have disabled for life. Military staff also qualify for student loan forgiveness.
- If you have hard times paying but you previously paid your monthly installments with good faith, you may also qualify for a postponement in payments. This is called a deferment request. Your lenders may offer you with the forbearance option, which allows you to temporarily reduce your payments until you are back on track.
What if You Default On Your Student Loan Repayments?
Are you getting behind and defaulting on the repayments of your student loans? If you do default on the loan your creditors could call up repayment the full amount of your debt or they could turn over the debt to a debt collector. As a result, you could additionally incur late charges and collection fees and your credit will be damaged.
In case your loans already entered the default status, don’t worry. Simply arrange with your lender to repay the loan. After you’ve made twelve student loan debt payments and received “rehabilitation” status, you will no longer be considered in default. Credit bureaus will eliminate the default record from your credit reports.