Defaulted Student Loans can Bring Stains in your Financial Records

Encountering legal complications especially from banks or any other financial institutions is indeed a nightmare. While taking monetary assistance from banks, you agree to obey all their terms and conditions to make the repayments within the mentioned time period. You even meet your academic goals flexibly and you are ultimately satisfied at the end. Now, your next crucial duty is to stick to your promises of paying back the loan along with the interests in time. If you fail, no matter what the reason is, your loan will treated a defaulted one. Once this happens, you will have the worst of days ahead.


The consequences of defaulted student loans are purposely made harsh for obvious reasons. Whenever a loan is offered to a student, the lender provides easy terms and conditions so that the loan applicant can easily repay the amount with ease and convenience. Once the time period of the loan comes to an end, the applicant will be given a maximum of sixty days to make the repayments. If he still fails, he will be further provided a final period of ninety days. Now, this is the deadline that has to be met or otherwise the following consequences might affect your life:


          o Your credit score comes down to zero.
          o You lose all your banking facilities like application of further loans, accessing credit cards etc.
          o Your tax returns are all intercepted by the loan lending authority in order to repay your loan.
          o All your bank accounts get deactivated and you are allowed no further transactions.



So, you can imagine how worse can be your lifestyle if all these happens at the same time. The first and foremost thing is to contact your lender immediately and tell him all the reasons for your inability to make the payments in time. If your credit score has already been affected, you can join a rehab program and improve your score.