Paying back student loans can be difficult, especially if you are a recent grad who has failed to find a job, or if you have been laid off recently. Do not panic if you are having trouble making your student loan payments, because you are not alone.
Another thing you are NOT going to want to do is allow your student loans to go into default. You NEED to contact your student loan lender immediately and make them aware of your situation. Student loan lenders are willing to work with you. Below are 5 reason why you do not want to let your student loans slip into default:
1. The entire student loan becomes due in full.
2. Collection costs up to 19.5 % could be added to your student loan.
3. The defaulted student loan will appear on your credit report for up to seven years, YIKES!
4. Your employer could be served a legal garnishment notice requiring them to forward 15% of your pay towards repayment of your student loan.
5. Your income tax refunds could be withheld and applied toward your loan repayment.
Tags: bankruptcy, credit, federal student loans, Private student loans, student loan debt, student loans
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