Defaulting On A Federal Student Loan

Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Bad Credit and Student Loans and other Student Loan topics.

What do I do if I can't make the payments on my student loan?

Defaulting On A Federal Student Loan

Your federal student loan debt is a liability that you take on to help finance your college education. It should not be taken lightly. When you fail to make your payments, your loan will be considered to be in “default.” If this appears as an adverse mark on your credit history, it is taken seriously by other lenders as well as potential employers. The federal government offers several options for students to help avoid this option including different repayment plans, loan deferment, and loan forbearance. You are also given 270 days to catch up and avoid having your account turned over to a collections agency. Before you let this destroy your credit history, talk to your student loan servicing company to see if there are options available to you.

   

Comments

Nobody has commented on this tip yet. Be the first.



Name:


URL: (optional)


Comment:


Not finding the advice and tips you need on this Student Loan Tip Site? Request a Tip Now!


Guru Spotlight
Jennifer Mathes, Ph.D.
Buy My Book