Defaulted student loans are a messy business and it can lead to considerable distress. It occurs in case you have taken a student loan and failed to pay your loan back for two hundred and seventy days. Unless you make a concerted effort in regard to defaulted student loan repayment you will end up facing some very serious actions.
Defaulted Student Loan Repayment – Avoid Stringent Actions Against You
Consolidation is one way to avoid these stringent actions against you and it can in fact help you avoid being sued, having your wages attached and also having your income tax refunds stopped – without any prior warning. What’s worse is the fact that your poor credit score will take an even bigger hit and will nosedive further.
Unless you make concerted efforts to ensure timely defaulted student loan repayment you will find that your eligibility to get a credit card or obtain mortgage loans will become especially difficult. Not ensuring timely defaulted student loan repayment can also lead to high collection costs that can amount to as many as twenty-five percent of the total amount of your defaulted student loan.
Fortunately, all is not lost for those who default on their student loans and it is also possible to ensure defaulted student loan repayment without much fuss or bother. Consolidation of your defaulted student loans is one way to ensure proper defaulted student loan repayment. This in fact is the most popular choice in regard to defaulted student loan repayment and the main reason for such popularity is the lower rate of interest it involves as too the simplicity of paying just one loan as compared to paying back several loans.
Consolidating your defaulted student loans does also mean that you will be forced to make three defaulted student loan repayments on a monthly basis in order to qualify for the consolidation through the federal government of your defaulted student loan. Federal loan consolidations are also more popular since the terms offered are more lenient as compared to consolidation of private student loans.
Once you consolidate your defaulted student loans your lender will agree to pay back the outstanding amounts and will instead issue a fresh consolidated loan that can be paid back with easier terms and conditions.
Refinance defaulted student loans is another option open to those looking for suitable means of effecting defaulted student loan repayment. Though this may be a rather more difficult option (considering the fact that you are defaulter of a student loan) many lenders, after doing due diligence will agree to refinance your loan.