Just like mortgage payments, student loan repayments need to be on time also. Your loan servicer will provide information about repayment and will notify you of the date loan repayment begins. In most cases, your loan payment will be monthly. It is very important that you make your loan payment on time every month. You [...]
Posts under ‘Student Loan Default’
Bankruptcy and a Federal Student Loan
By Richard Shelmerdine If you are looking for information on bankruptcy and a federal student loan then you have come to the right place. You may feel that your federal student loan is making your financial life hell at the moment but it does not have to be like that. Bankruptcy is and should always [...]
Advantages of rehabilitating your defaulted student loan(s)
You may want to consider rehabilitating your defaulted loan(s). Advantages of rehabilitation include: Your loan(s) will no longer be considered to be in a default status. The default status reported by your loan holder to the national credit bureaus will be deleted. You will be eligible for the same benefits that were available on the [...]
What are the consequences of student loan defaulting?
Borrowers who fail to make a payment on time are considered delinquent on their Direct Consolidation Loans. Borrowers who do not make payments for 270 days are in default. Defaulting has severe and long-lasting consequences, as follows: * The Department of Education can immediately demand repayment of the total loan amount due. * The Department [...]
Defaulted FFEL or Direct Loan Program loans
Borrowers with defaulted FFEL or Direct Loan Program loans may be liable for collection costs incurred to collect the loans. If the holder of the defaulted loan, which may be either the U.S. Department of Education or a guaranty agency, retains a collection agency to collect defaulted loans, charges imposed by the collection agency may [...]
Can I Consolidate a Defaulted Loan?
Generally, Federal education loan(s) in default may be consolidated in a Direct Consolidation Loan if borrowers: * Agree to repay the loan(s) under the Income Contingent Repayment Plan. OR * Make satisfactory repayment arrangements with the current loan holder(s). If, before applying for consolidation, borrowers who want to completely clear the default notation from their [...]
If You are Facing Loan Default
For student loans authorized under Section 435(i)Title IV of the Higher Education Act, default occurs on a Federal Family Educational Loan (FFEL) program loan after a default has persisted for 270 days in the case of a loan repayable in monthly installments or 330 days in the case of a loan repayable in less frequent [...]
Does a bankruptcy discharge relieve an individual of his obligation to repay a student loan?
Whether a bankruptcy discharge relieves an individual of his or her obligation to repay a student loan or grant overpayment is now determined by whether a court has ruled that repayment would impose an undue hardship on the borrower and his or her dependents. If the bankruptcy was filed on or after October 8, 1998, [...]
Repaying Student Loans Held by the U.S. Department of Education
After you graduate, leave school, or drop below half-time enrollment, you have six or nine months before you begin repayment. You will receive information about repayment and will be notified by your loan provider of the date loan repayment begins. Addressing Your Defaulted Student Loan If you default on your student loan, the maturity date [...]