How To Pay For Your Student Loans?
Due to the increase in tuition fees annually, it isn’t surprising to finish college with a boatload of debt. But here is one thing that you should know, the stress and frustration of few weeks you spent preparing for finals is nothing to the burden of paying for your college debt. After walking off that stage and few months later, you’ll soon make payments like you’ve never before.
If there is one debt that you want to settle, it is no doubt 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.
Just what I mentioned earlier, the consequences of not settling your loan may be brutal and also, life changing. It will start as low key however, missing your student loan repayment and you might soon start getting a letter and calls. Miss making the second payment consecutively and rest assure that you’re going to receive constant phone calls as well as letters.
Also, there’s a possibility that your credit rating will take a hit because of your non-payment of the loan. Say for example that you’re 3 months late on payment, then you better expect your credit score to have a big drop to as much as a hundred points. Future borrowing will cost you more is what this meant. 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.
Try not to pay loans for student for 9 months straight and you’ll go to what is called as delinquency. In the event that you have federal student loans, then the odds that you’ll be reported to debt collection agencies and the IRS as well is high. You will be eligible as well for liens and wage garnishments against your property and a number of 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, a proactive approach is what most lending institutions prefer. Here, it will be wise of you to set up a meeting if you can and meet someone in person. Be sure that you’ve informed them of your financial situation and let them know that you’re struggling to make repayments.