Assistance For Defaulted Student Loan And Private Student Loans

By Author: Nancy Crippen
Total Articles: 22
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The cost of education has increased to a considerable extent over the years; therefore, the students need loans to continue their education because everyone is not financially sufficient. They have the responsibility of repaying the loan back but due to unfortunate circumstances many students fail to repay the loan and their loan become a Defaulted Student Loan.

When a loan becomes a Defaulted Student Loan the borrower has to suffer severe consequences because the lender passes on the borrower’s case to a collection agency. Their duty is to collect the money on behalf of the lender and may use offensive and harsh methods to collect the loan. Due to Defaulted Student Loan your credit score will be poor, your tax returns can be withheld and you may be forced to repay the loan through legal action. You mat not even get any other financial help from anywhere. Thus, Defaulted Student Loan is a serious situation and must be handled carefully.

If you want to escape from Defaulted Student Loan, you can cancel your loan, renew it by consolidation or stop the payments temporarily. However, when you take ...
... a loan, there are some conditions which you have to agree with before you take any action for your loan. For example- you can cancel your loan only when your school has closed while you were enrolled in it or you have withdrawn from the school. You can also cancel your loan by joining military or if you decide to become a full-time teacher. Another way to escape Defaulted Student Loan is to declare bankruptcy; however, there are certain conditions to it. When you declare bankruptcy you may be discharged from the loan but your co-signers will no be discharged and they will become liable to pay the loan to the lender.

Besides federal loans you can also opt for Private Student Loans. However, if you have taken multiple Private Student Loans, you will have to do much paperwork each month to make payments to different lenders at different times of each month. Another challenge that you may have to face with multiple Private Student Loans is that some of your loans may have variable rates of interest while others may have fixed rates of interest.

Apart from these complexities of taking many Private Student Loans another serious problem is that most of the students fail to repay their loans. Therefore, students who have taken multiple Private Student Loans and are having problems in repaying them can take the help of private student loan consolidation.

Consolidation of Private Student Loans can be helpful in many ways like: a) they help you to pay only one payment each month instead of multiple payments, b) they help in lowering down your payments by lowering interest rates and providing more time to make the loan repayments over a period of say 10, 20 or 30 years, c) you can get consolidation loans at a fixed rate.

Therefore, in case you fall in some trouble like and Defaulted Student Loan or problems regarding Private Student Loans it is important to seek proper help otherwise you may have to face severe consequences.