A defaulted student loan can ruin your future prospect
Student loans are extremely helpful aids for students who do not have the necessary financial capability to pursue higher education. But the dream of a great career with the help of higher education done with student loan can turn in to a nightmare quite easily if you default in repaying the loan amount. There is probably nothing worse than defaulted student loans. The reason is that student loans are for most people, the very first loan of their lives and defaulting on student loan would mean a patch in your credit rating report at the very beginning of your career as well a life. And that one patch in your credit rating report can make it impossible for you to get any loans in future, whatever the purpose.
The good news is that defaulted student loans can be avoided. The very first thing that you should do if you feel you might default in repaying your loan is to consult your lender. If your loan is a federal student loan, your time limit might be increased. But if your loan is a private one, you might face a little difficulty; however a common ground can be reached if you discuss your situation with your lender. All your lender wants is their money and student loans in default do not help their cause either, hence if there is any chances of you returning the loan, they would take it for sure. One way to avoid student loans in default is if your lender increases the time limit, as mentioned above. There is another way too, loan consolidation. If you have others loans too, then only you can avail this option.
The rate of defaulted student loans is increasing everyday and there are several reasons for this. The main reason though is unemployment. Students not getting employed after their completion of education are of course finding it difficult to repay the loans with the result being increasing numbers of student loans in default. Since you cannot do anything about being employed after completing your course, it is advised that you try to go for federal student loans to be safe. Even if you have private loans, make sure you follow the above mentioned tips to stay away from defaulted student loans. Employment will come gradually, but by avoiding student loans in default you can secure your future career as well as life.
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