The sorry state of the economy has scared many a student from taking a student loan for their higher education. In fact, many of them are looking for a job so as to ride out these financially difficult times.
What many of them are not aware of is that they would be safer if they go for the federal loans. There are a number of repayment options which you will get only in the case of the federal loans. But defaulting on the federal student loans can also lead to severe repercussions.
Given below are the three simple steps to help you get some footing if you are weighed down by the loans.
Know the loans you have
When you take out a loan you are provided with all the information that you will ever need regarding it. but if you have since then lost them then you have to visit the National Student Loan Data system to get them. this is a central database maintained by the Department of Education and therefore you will not get any information regarding any private loan.
Know the rights you have
Even for the graduates, jobs are hard to come by. If you are among them and are worried about the payment of your loans, then you can apply for deferment. Again, if you have a low income you might have problems with the monthly payments. In that case you can ask for an extension of your repayment period on the loan. you can gradually increase the payments if your salary increases.
Do not waste time
When people take a federal loan they tend to avoid the loan provider if they realize that they won’t be able to pay the loans. This is a wrong approach. The moment you realize that the loans are going to be problem for you, the first thing that you have to do is to talk to the loan provider. They are the only people who will be able to help you by working out a plan for the repayment. In fact, if you contact them on time and ask for Defaulted student loan help, your loan account wouldn’t be handed over to the debt collectors.
The private loans are in no way covered by the federal government. Therefore, when the government is announcing the various schemes in order to ease the student debt situation, the private loans are not included in that. So, one should consider carefully even before thinking of taking a private loan.
Get more understanding on how to come out from defaulted loan deluge. Read Zero Debt for College Grads by personal finance expert Lynnette Khalfani which provides a thorough roadmap for stress-free living that will allow recent graduates to focus on careers while maintaining financial responsibilities.