How to Recover from Missed Student Loan Payments

Believe it or not, missed student loan payments can wreak havoc on your credit and your finances. A lender may opt to file a lawsuit against you, send your account to a collection agency or even garnish your wages. It is important to immediately recover from missed payments before the consequences grow too great.

Contact Your Lender

No matter how hesitant you may be to contact your lender and discuss your inability to repay your student loan, informing your lender of your financial difficulties is imperative. If your lender knows that you are making an effort to make up for payments you missed, it may be willing to work with you by temporarily restructuring your repayment plan or even granting you a deferral while you catch up on payments.

Make Up Missed Payments Immediately

The longer you wait to make up for student loan payments you missed, the more fees you will accrue. In addition, late payments appear on your credit report and damage your credit rating. By making up your missed payments as quickly as possible, you can reduce the damage to your credit. This may require you to rework your budget, take on extra work or liquidate your investments. Keep in mind, however, that the temporary sacrifices are well worth avoiding credit damage, a lawsuit or an eventual wage garnishment.

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