Student loan default – avoid ruining your future
For most people all over the world, still today, education is a distant dream. For the very fortunate few who go through primary school and high school, it becomes really difficult to continue with graduation and post graduation. Most have the responsibility of their family and hence have to leave education to get a job and a few who although do not have such commitments, cannot carry on with their further education due to lack of finances. For such people, student loans are blessings that are there to help them fulfill their dreams of a successful career.
But this dream of a successful career with the help of student loans can turn into a nightmare if you are unable to repay the loan after the stipulated time period is over. There is probably nothing worse than a student loan default since this is possibly the very first loan you have taken in your life and having a defaulted student loan to your name will make it your last loan as well. Your credit record will have the mark of this student loan default and as your life as well as your career has just begun, it can spoil your entire future by making it difficult, verging on impossible, for you to get any further loan in your life ever. Hence you can understand for yourself how important it is to avoid being defaulter of student loan.
The biggest reason for increasing defaulted student loan each year is unemployment. But as the reason will not stop your credit record from having the student loan default, instead of brooding about it, you should try to avoid defaulting somehow. The best thing is to be honest. If you have taken a federal loan, on talking to your loan officer, you might be granted some grace time over your stipulated time period. But if you have taken a private loan, avoiding a student loan default can be a little more difficult than that. Try talking it out with your creditor and if all else fails, go for deferment and forbearance or loan postponement or if you have other loans too, loan consolidation. Make sure you have the clause of default as well as the time that will be given to you before you are to be declared defaulter by the creditor clear before entering in to any kinds of contract. Just avoid defaulted student loan anyhow.
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