2006-12-12 00:30:53 · 7 answers · asked by Anonymous in Education & Reference ➔ Financial Aid
If you are talking about an FFELP loan, plenty of phone calls from the lender, Servicer and guarantor to try and work out a payment plan or forbearance that the borrower can live with (if making their payment is a problem). If a payment or forbearance isn’t processed for a certain period of time (180 days?) a claim is filed with the guarantor on the loan and the lender/Servicer is compensated for it. The guarantor will then attempt to collect on the defaulted loan. They can use wage garnishment, legal action and even garnishing your federal tax return. It also hits your credit report and can keep you from obtaining certain jobs.
If you are having a problem making your student loan payment (not saying that you do) call your lender/Servicer and ask for some help. They have different payment plans that help income sensitive borrowers make their payments. Remember the last thing anyone wants is a defaulted student loan.
2006-12-12 00:45:55 · answer #1 · answered by Martin Chemnitz 5 · 0⤊ 0⤋
What tehy said, plus, you mess up your credit rating, which means that every time you go to get a loan of any kind during the next ten years of so, you will either be turned down, or else you will have to pay a significantly higher rate of interest for everything you buy or every loan you get.
Do not let this happen. You can talk to the people who you owe money to. They dont want you to default, they want their money. So many times they will arrange a different payment schedule, or allow you to skip some payments. You need to negotiate, not run and hide!!!!!
2006-12-12 00:42:07 · answer #2 · answered by matt 7 · 0⤊ 0⤋
If a student loan goes into default, the lending institution can have your pay garnished and may also apply to the IRS for garnishment of your tax return for as many years as it takes to pay the loan off. One way or another, they're going to get the money you owe them out of you.
2006-12-12 00:40:00 · answer #3 · answered by sarge927 7 · 0⤊ 0⤋
i'm no longer particular what you recommend by you "let them enter default". Being in default starts off you an ongoing offsetting or garnishing you that okay ought to very last till you're age 100 and upload a good type of pastime. So on the instantaneous contact the William D. Ford application and attempt to get into easily one of their compensation plans particularly.
2016-11-25 22:33:43 · answer #4 · answered by ? 4 · 0⤊ 0⤋
Get in touch with who ever has loaned you the money and tell them of your problem. Also get in touch with the CAB and they may be able to advise you.
2006-12-12 00:41:19 · answer #5 · answered by CT 6 · 0⤊ 0⤋
They can also flag your IRS return, if you get a refund, they start paying off the loan until it is satisfied.
2006-12-12 00:38:47 · answer #6 · answered by cheezeboe1 3 · 0⤊ 0⤋
they take away your degree!!!
2006-12-12 00:35:25 · answer #7 · answered by Anonymous · 0⤊ 0⤋