Stop Student Loan Default
When college student loans go into default then your options become very limited. It is not as easy as you might think to get your student loans out of default if you let your student loans go into default. When the Department of Education, or another student loan lender, decided to put your college student loans into defaulted status it means that you have missed several opportunities, over a significant period of time, to pay on your student loans or to make payment arrangements. Once you have missed payments from 270 to 330 days, depending on the payment situation, your student loans are defaulted.
The truth usually is that for one reason or another, good or bad, well-intentioned or careless, you have neglected the phone calls from the student loan lenders. If your loans are going into default then you have also ignored written notices. In fact, they have most likely even sent someone else in your family a letter attempting to contact you. When you sign the student loan papers you are required to put down two personal contacts just in case they lose track of you. And, when you do not pay your college student loans for awhile then, viola, they are going to contact everyone they can to get their money back.
If you want to stop college student loans from going into default, pick up the telephone. If the student loan lender is still calling you or sending letters, and you have not yet received the letter that says that your loans are officially defaulted, then call right now. If you beat that letter you can stop the college student loans from going into default, but if you continue waiting then you will not be able to stop your loans from defaulting. It is easy to get behind, but if they are not in default yet then you still have the option and opportunity to prevent your college student loans from going into default. There are a few main ways that you can stop your college student loans from going into default.
Forbearance or Deferment to Stop College Student Loans from Going into Default
Make a payment. The easiest way to stop student loans from going into default is the make a payment, even if it is extremely late. Student loans go into default because you are not paying. Almost more important than making a payment to prevent your student loans from defaulting is contacting them.
Call the lender. For example, if SallieMae is your lender then you need to go call them or go online and find the forbearance or deferment forms. Many times, if you are past due on your student loan payments then you can call the lender and they will process the paperwork over the phone. Whether or not they give you a forbearance or deferment to stop the student loans from going into default does not really matter as long as you get in touch with them, and prevent your loans from going into default. At the very least, getting a forbearance or deferment will give you more time to figure out how to live, pay, or discharge student loan debt. If you are disabled then you can try to prevent your student loans from going into default by applying to have your loans disability discharged.
If your college student loans are not in default but you think they are going into default, then it is not too late. Pick up the phone and call the lender. The power of just simply calling the Department of Education and taking responsibility for your student loan payment being delayed cannot be stressed enough. You can also used the National Student Loan Database to track your student loans. That system is supposed to be current, but sometimes database errors occur, so must just call. It is very helpful to utilize the student loan database system to see the status of all of your loans as well as getting contact information for the lenders.
One other way to stop college student loans from going into default is to apply for the Income Based Repayment (IBR) Program. This is a program meant to help people repay their college student loans as well as help them stop their loans from going into default. It is a fairly new program that started in 2009. The IBR enables people to pay zero on their student loans depending on their financial situation. Do not think that you will not qualify just because you are employed because you are likely the exact type of person and situation that this student loan program was made for, and it will definitely create a plan to stop your college student loans from going into default.
Student Loan DefaultAbove all else you really want to stop college student loans from going into default. Once this happens your credit is absolutely shot and the financial hole is tremendously deep. It is very hard to get out of default and it is frustrating. If you do not stop your student loans from going into default then for the rest of your life your tax return will be garnished as well as any other government funds that should come to you. This even included stimulus checks. If you do not stop your college student loans from going into default then the government can sue you. They can garnish Social Security checks and your credit is devastated. Your credit report will have multiple entries saying "default" if you do not prevent student loans from defaulting.
Do something today to stop college student loans from going into default. No matter the outcome, it is probably better than being defaulted.