Late Student Loan Payments

Are you about to default or go delinquent on your student loans? If you have missed one or more monthly payments then you would fall into one of these categories.

• Delinquent, means you’re late making a scheduled loan payment(Usually 30 days).
• Default, means you’re 270 days or more late in making a loan payment.

It is very common for people to miss payments on their student loans. When this happens it can damage your credit record. But simply ignoring it will only make it worse. Eventually if you continue to not make your student loan payments the banks will go to a debt collection company who will do even more damage to your credit record and bombard you will harassing phone calls. In the past people who defaulted on their student loans would be out of luck when looking at a consolidation service but recently the U.S. Department of Education changed the rules. Now you may consolidate your defaulted student loans but you must make at least three consecutive payments to your existing loan lender. Once you have made these three payments you may apply to have your student debts consolidated. Defaulting on a loan is far more serious than delinquency but delinquency can be reported to the credit reporting companies. This report will remain part of your financial record and might hurt your credit rating. Some negative effects of defaulted or delinquent student loans include:

• Late and collection fees.
• Lenders can sue for the remainder of loan, interest, and fees.
• Eligibility for future financial aid.
• Garnished wages.

If you're close to delinquency then you should look at consolidation to lower your monthly payments and not miss any payments. If you've defaulted already then bookmark this website and come back once you've made three student loan payments.