![]() ![]() Some questionable companies ask borrowers for a fee and promise to have their loans forgiven. ![]() Unfortunately, student loan scams are just as prevalent as ever. Reason #7: “I Thought I Was Paying It/Thought it Was Paid” In these cases, employees haven’t been receiving their statements and don’t know that they needed to be repaying it. During these moves, physical mailing and email addresses change, and student loan servicers occasionally lose track of their borrowers. College students move back and forth between their parents’ house to their college address to eventually their own place. Leaving college is a transitional period for millions of young people. We (as well as our affiliate companies) have cured millions of students, ex-students, and graduates from delinquency and default by helping them into sustainable repayment plans. If you’ve never gone into default, it might be hard to imagine a person ignoring overdue statements and servicer phone calls for 9 months. It’s possible that your income or retirement benefits could even be garnished. Also, your student loan servicer will likely impose late fees or possibly even sue you through a collection agency. This could limit your ability to take out a loan, apply for a rental property, or even land a job. The missed payments will appear on your credit report and have a negative impact on your credit score. Missing one student loan payment makes you “delinquent.” If you don’t make a payment within 270 days, you will be considered “in default” on your student loans. Further data is needed on employment and earning, but based on the employees we work with, student loan default can happen to anyone. According to a recent report by Brookings, income alone cannot predict who will default on their student loans. It’s expected that 2 out of 5 student loan borrowers will be under default in the next five years. Your loan holder can talk with you about your options.Īlso, you might consider contacting a local, non-profit consumer counseling organization for advice about managing all of your personal finances.Even full-time employees default on their student loan payments. If you experience financial difficulties due to unemployment, illness, or other economic hardships, don't be embarrassed or afraid to ask for help. You may be eligible for a deferment, forbearance, loan consolidation, or loan cancellation/discharge. Unlike other consumer debt, such as credit cards, you have options. If you're having problems making your student loan payments contact your loan holder immediately.
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