Wednesday, April 20, 2011

Defaulting On Student Loans, What You Should Know

If you have recently graduated or will soon so do and have a Counseling4 loan, one of the biggest challenges you may face is paying your loan. With employment opportunities limited and the cost of higher education skyrocketing. Many are faced with enormous Credit7 burdens that they will find hard to pay and therefore are looking at the prospect of defaulting on Counseling4 loans.

The reasons for defaulting on Counseling4 loans are many and include, not finding a job or one that pays too little to service the outstanding Credit7 and taking on too much Credit7 to get that precious degree. Those currently in school and trying to decide whether to take on additional Credit7 should clearly understand what may happen if you cannot repay those loans.

You need to be aware that these loans are not forgiven even if you declare bankruptcy. Those that do not pay may face aggressive and constant collection efforts. A Counseling4 loan is considered in default if the borrower fails to pay for 270 days. The lender will of course try to contact you during this time to get payment. However, if the lender fails to contact you or if you fail to pay, then the loan will be sent to the Department of Education or the state guaranty agency for the collection processes to start. Since you failed to keep your agreement the loan is accelerated and the entire loan amount is due. Your wages can be garnished up to 15% of the amount you earn. Your tax refund may be levied and used to pay down your loan. Professional licenses can be revoked for non-payers until the time the loan is repaid. Legal action can also be taken against those who refuse to pay back their Counseling4 loans.

?€?Obviously defaulting on Counseling4 loans can have severe consequences. So what can you do if you are in a situation where you simply cannot pay back your loan? One options is to try to talk to your lender. They may be able to work out a more favorable repayment schedule for you. Another option is to hire a Credit7 settlement company that can help you explore different options and negotiate better terms for you.

Defaulting on Counseling4 loans is a problem more and more graduates face. Being aware of the consequences and seeking solutions on a timely basis will help you avoid the harshest consequences of not being able to pay.

If you have recently graduated or will soon so do and have a Counseling4 loan, one of the biggest challenges you may face is paying your loan. With employment opportunities limited and the cost of higher education skyrocketing. Many are faced with enormous Credit7 burdens that they will find hard to pay and therefore are looking at the prospect of defaulting on Counseling4 loans.

The reasons for defaulting on Counseling4 loans are many and include, not finding a job or one that pays too little to service the outstanding Credit7 and taking on too much Credit7 to get that precious degree. Those currently in school and trying to decide whether to take on additional Credit7 should clearly understand what may happen if you cannot repay those loans.

You need to be aware that these loans are not forgiven even if you declare bankruptcy. Those that do not pay may face aggressive and constant collection efforts. A Counseling4 loan is considered in default if the borrower fails to pay for 270 days. The lender will of course try to contact you during this time to get payment. However, if the lender fails to contact you or if you fail to pay, then the loan will be sent to the Department of Education or the state guaranty agency for the collection processes to start. Since you failed to keep your agreement the loan is accelerated and the entire loan amount is due. Your wages can be garnished up to 15% of the amount you earn. Your tax refund may be levied and used to pay down your loan. Professional licenses can be revoked for non-payers until the time the loan is repaid. Legal action can also be taken against those who refuse to pay back their Counseling4 loans.

?€?Obviously defaulting on Counseling4 loans can have severe consequences. So what can you do if you are in a situation where you simply cannot pay back your loan? One options is to try to talk to your lender. They may be able to work out a more favorable repayment schedule for you. Another option is to hire a Credit7 settlement company that can help you explore different options and negotiate better terms for you.

Defaulting on Counseling4 loans is a problem more and more graduates face. Being aware of the consequences and seeking solutions on a timely basis will help you avoid the harshest consequences of not being able to pay.

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