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.

Student Loan Repayment In Todays Economy

If you have not noticed quite yet, repayment of student loans is becoming increasingly difficult for many college graduates! It's hard to believe that a country like the United States, whose young citizens who want to succeed in life, and trying to do this by going to college and achieve a higher level education, are actually being upside down for decades by student loan repayment problems. Unemployment in the economy remains a major problem and recent graduates are taking a hit. So much so that many recent college graduates not being able to meet their student loan repayment agreements months after graduating from college. The American University graduate is under attack financial and in serious financial trouble!

Graduates by default in the payment of student loans:

The U.S. economy has not recovered and unemployment is active. In August 2010 unemployment in the United States was estimated at 9.6 percent, if we had to resort to the real figure of unemployment, the U.S. Department of Labor U-6 figure, the unemployment rate is almost double the 20 percent unemployment. This is bad news for college graduates. There is no work for them and the student loan repayment assistance programs are virtually nonexistent. Unfortunately, many graduates have had to pay back agreement for student loans. The federal government recognizes the knowledge that college graduates are struggling to meet their payment arrangements for student loans and yet offer nothing in the form of a rebate program for student loans. It seems as though depending on the government to bail you out in the form of student loan forgiveness or loan repayment program student, you can forget it.

Student Loan Repayment Program:

Trust me, the last thing you want to do is default on your agreement to pay student loans. According to Federal Student Aid (FSA), the Treasury Department has the right to garnish your wages, tax refunds offset to pay off debt and even notify the credit bureaus of the breach, to name a few. The fact of the matter is that you have options when it comes to student loan forgiveness programs or student loan payment. The only problem is that many student loan programs require payment assistance to put your life on hold for up to 6 years, both for assistance to pay student loans. I'm not saying that many of these programs are great because they are. Many of the graduate programs of the university to help with down payment assistance and even student loans student loan forgiveness to serve the great causes and help many needy communities. But the crux of the matter is that not everyone can afford to have a late start to his career, especially if you return back to school someday.

Student Loan Repayment Program steroids:

There is no such thing as a program of student loan repayment on steroids and if they have not learned it is best to start as soon as possible, is that entrepreneurship. That's it! The only way to pay off student loans faster and not put your life on hold or live a life of lower quality than it is to become your own boss. I know what you're thinking, how I can be my own boss, when not even have a job? Trust me, I had that same question before we learn about the benefits of becoming an entrepreneur of the 21st century and it really took to start my own online business. It comes down to 1 of 2 things: out of debt as quickly as possible and design a lifestyle or continue looking for a job that pays peanuts and have to make student loan payments for the next 20 years.