Do not let student loan default ruin your career
The increase of student loans in default over the years is a worrying trend indeed. The main reason for this being unemployment. While the government is trying to solve the problem of unemployment, you as the student should try and avoid defaulting too. A student loan is a savior for students all over the world who do not have enough money to finance their own higher studies. The loans are broadly of two kinds, federal loans and private loans, and are offered against the condition that the student will repay it along with the interest after completing their studies. At the most a certain grace period over and above the stipulated time period is given.
Student loan default, for whatever reason it might occur, can have a serious effect on your career as well as your future life. As this is the very beginning of your life and career, having a student loan default to your name might make the rest of your life miserable. As student loans in default are shown in credit rating history, it will be very difficult for you to get loans in future life, for anything. No one is interested in knowing the reason behind your student loan default and hence you should try your best to avoid defaulting anyhow. The best thing would be to talk to your creditor for loan postponement i.e. to give you some more time before your start repaying your loan. While this may be easier with federal loans, with private loans it would need a little persuading.
To stop student loans in default, a number of solutions were thought of. If you have other loans too apart from the student loan, you can go for loan consolidation. It will prevent you from going in to student loan default by decreasing the repayment amount per month considerably but you will end up paying much more interest than before. Other ways are deferment and forbearance and as stated above, loan postponement. But for these two, you would need to talk to your creditors. It is better to have a honest talk with your creditors since all they want is their money and if both of you can work out a mutually beneficial path such that to avoid student loans in default, there would be nothing better. The main point is, do the best you can to avoid student loan default somehow.
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