How to Deal with Your Student Loan Delinquency

Student loan delinquency is a problem that many people have to deal with at some point. With the high cost of education, it is not uncommon for individuals to accumulate student loan balances that are difficult to make payments on. Here are the basics of how to deal with your student loan delinquency.

Facing the Problem

If you are delinquent with your student loan payments, you need to face the problem head-on. This is not one of those things that you can get out of very easily. In fact, student loans are one of the most difficult debts to get rid of unless you simply pay them off. They are not eliminated through bankruptcy or any other type of judgment. About the only way that they can be eliminated is if you are disabled permanently. You are dealing with money that is owed to the federal government, and they will not let you get away without paying it back. This means that you will need to look at your options when it comes to repaying the student loans.

Contact Your Lender

As soon as you are ready to deal with the problem, you need to contact your lender. Call them on the phone and talk to a representative about the possible solutions in front of you. Typically, student loan lenders are very flexible and are willing to work with you to come up with a solution. They want to get their money from you in one way or another. Therefore, they usually have a number of different options that they can offer you.

Deferment

One option that you could choose to pursue is deferment. This is basically when the lender allows you to defer payments for a certain period. During this deferment period, the interest is still going to keep accumulating on the loan. A deferment typically lasts for as long as one year with most lenders. Most of the time, a lender is going to allow you to defer payments for as long as 2 to 3 years without regard to the reasoning behind your decision. This can provide you with some flexibility when it comes to getting your financial situation in order before having to make student loan payments.

Forbearance

Another similar option is a forbearance. A forbearance also allows you to stop payments for a given period. In most cases, this will provide you with one year to postpone your payments. With a forbearance, you will typically have to have a good reason for requesting this. For example, you have to be going through serious financial hardship, a divorce, a foreclosure, bankruptcy or some other type of extreme situation.

Flexible Payments

Student loan lenders typically provide many flexible payment options for you to choose from. For example, you may be able to utilize a graduated repayment plan, which starts out with a low payment and works up to a larger payment over several years. You can also utilize an income-based repayment system that increases as your income does.


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