In my previous articles, I discussed the options a student or graduate has when faced with large student loan payments and the inability to comply with standard repayment. I felt it best not to stop there but discuss the very real and serious consequences of defaulting on student loans.
This all came to me as I learned of a loved one’s pressing circumstance of a gargantuan monthly student loan bill and an extremely low-paying job. While he is working to exhaust all options, the pressures of payment are still animate as he waits for repayment alternative approval.
Whether he has the money or not, the payments are still due. Whether or not the lender knows of his situation, a missed payment is still a strike against him. If you are in a similar circumstance or simply feel that it’s “no big deal,” allow the following information to enlighten or perhaps motivate you.
The following was retrieved directly from the U.S. Department of Education, Federal Student Aid Collections Guide:
Typical loan recovery procedures are as follows:
If you have already gone into default, there are still yet options for you. Repaying Loans in Default
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