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Defaulted Student Loans
What are Defaulted Student Loans?
Defaulting on a student loan is when you stop making your loan payments. Sure, there are times late payments are made, but not making any payments places you in default status. Unfortunately, there are serious consequences when defaulting on a student loan.
The school you attended guaranteed the loan. Whether you have a private loan or a federal loan, the lenders will take action against you to recover the money you owe.
Defaulting on student loans is a nightmare; it affects your credit, your wages can be garnished, and your bank accounts levied.
When you are placed in default for a Federal Direct Loan or Federal Family Education Loan, those programs are owned by the US Department of Education. They have a resolution group dedicated to recovering defaulted funds.
If you know that you’re in default, there are a few things you should immediately look into:
- Find out if you have private loans or federal loans
- Contact Goodbye Loans
- Ask how you can resolve this issue
- Make sure that if you set up a new payment plan that you can stick to it.
Defaulting on student loans, though serious, doesn’t mean you can’t move forward. Contat us today if you are interested in:
- Loan repayment
- Loan consolidation
- Loan rehabilitation
How do I know if I’ve defaulted on my Student Loans?
Every institution is different. However, you are considered to be in default if you haven’t made payments in 3-6 months. You should receive a series of notices via phone, post, and, or email from your lender like:
- Your student loan payment is late
- If you don’t make your payment within “X” time-frame, this month’s payment will cost “X” amount in late fees on top of your payment
- You are two months behind on your loan payment
- If we do not hear from you and no payment is made, you are at risk for DEFAULTING ON YOUR STUDENT LOANS by “X” date.
- You have DEFAULTED ON YOUR STUDENT LOANS; this will appear on your credit and we will do “X” to ensure we recover our monies
A great way to avoid this issue is to contact Goodbye Loans and let us know your situation and find out how we can work with you so you avoid being in default.
- If you can’t make payments because you’re leaving for active duty in the military, going back to school, or your financial situation has changed, request a loan deferment or forbearance.
- If you are headed to graduate school, contact your loan provider and let them know. Find out if you’re eligible for a grace period.
Consequences of defaulted loans:
- Collections, plus interest
- Garnished wages
- Ineligibility for additional Federal, and, or private student loans
- You can be reported to the credit bureau
STUDENT LOAN FORGIVENESS
Student loan debt has reached an all-time high, and according to the Consumer Financial Protection Bureau, the total amounts to around $1.2 trillion. Goodbye Loans can help determine if you qualify for the student loan forgiveness.
Goodbye Loans matches thousands of graduates with federal programs that are offered by The Department of Education to consolidate and lower their current Federal student loans. We help you take advantage of the latest regulations put in place by Congress and President Obama and potentially save thousands of dollars. Debt is hard to ignore. When you’re staring down a ballooning credit card balance and fending off insistent phone calls from angry creditors, it can be an all-consuming enemy.