Posted on 01/07/2020
Getting your student loans back on track is one of the most important steps to achieving financial freedom. However, during this time you also have to juggle managing your finances, because L I F E.
Defaulting on your student loan debt can mean a bigger balance & a damaged credit score. 40% of student loans are 90 days or more delinquent or in default. If you have defaulted on your loans or are at risk to do so, you may have started noticing the following:
Defaulting carries additional consequences that affect your credit score, possible wage garnishment, loss of Federal tax refund, & even more stress to your life The good news is, borrowers in default have a few options available to help get their loans back in good standing.
Student Loan Rehabilitation
Some key benefits of choosing rehabilitation are removal of student loan default from your credit report, eliminating additional collection costs & putting an end to wage garnishment. A great option for borrowers who can commit to making their payments on time for nine consecutive months without missing a payment.
Student Loan Consolidation
Consolidation out of default allows defaulted borrowers to combine their defaulted student loans into one reasonable and affordable monthly payment under Income Driven Repayment programs. Not all defaulted loans will be eligible for this, so you'll need to speak with an Advocate to see if your loans qualify.
Defaulting on your student loans may seem like an overwhelming situation, but you have multiple options for getting out of default. Knowing your options is an important step in getting back on track. You may also find you're eligible for complete student loan forgiveness, discharge, or at the very least, lower monthly payments &/or interest rate as a result of consolidation. Stop stressing & start saving. Call American Student Loan Advocates today for help with your Student Loans (844) 499-LOAN