Student Loan Counseling
Are you finding it tough to repay your student loans?
Maybe you’re delinquent on student loans, or perhaps you’ve already defaulted?
You could get temporary respite from making payments if things are unmanageable.
Many struggling student loan borrowers postpone payment through deferment or forbearance when there are sometimes better options available. Using deferment or forbearance is nothing but a short-term fix (1 to 3 years) and it does nothing to resolve the underlying financial problems.
If you postpone your student loans, you will need to pay the interest that accumulates during postponement. This increases the amount you owe and prompts the following question…
If you can’t make payments today, why do you feel you will be able to make higher payments in 1 to 3 years?
You have other options:
- Eliminating the loan through loan cancellation
- Considering loan consolidation or more affordable payment plans
- Postponing payments through forbearance or deferment programs to avoid delinquency or default
You should at all costs avoid default as the following negative consequences will occur:
- Your credit will be impaired
- Your loan balance will skyrocket with additional fees of up to 25% of loan balance
- Tax refunds can be intercepted until these loans are paid in full
- The government garnish a portion of your paycheck
- You could lose federal benefit payments
- You could be sued
Speak with a student loan counselor if you’re finding it hard to meet your payments.