Have you somehow crossed the period of 90 days? Have your payment period of your student loans has exceeded? So now you have become a defaulter, Isn’t it? Default on student loans is like a curse on the individuals who fail to repay educational loans. It’s a blemish or ignominy on their career and the students who fail to pay off their loans, have to suffer a lot. Defaulted Student Loan in India leads to negative consequences on young adults and in such cases you even lose your job, your house property or your precious car. However there are ways out and some options should be opted for, to get rid of the loans.
Importance should be given regarding student loans
If you as a borrower miss to pay the educational loan within 9 months, it enters into a default status. This comes under federal student loans that are lent out by the US government. However, the default period for a private student loan varies, as it starts no sooner some payments become aberrant. If the loans are paid off on a timely basis, it does not enter into a default stage.
Notices are given to you to take special care and you need to be very cautious regarding your payments. Even though the monthly payment is not made on time, the loan will not come under a default status. It takes a lot of time, rather several months, for the default procedure to commence entirely.
Prevention is better than cure
The best way to prevent you from defaulted student loan is to pay the money every month on a timely basis. You should know the actual date of your payment and when and how to make the payment. If you have any problem regarding your payment, you should discuss it with your loan lender. The lender might reduce your monthly payments or defer the period of your payment.
Consequences that you face
When you default on your student loans, unpleasant consequences of collection agency student loan occur to you. The collection agencies might garnish your wages by removing 15 to 20 % of your income that is disposable, from your paychecks. The debt collectors start calling you any time and you have to talk to them. You become a puppet in their hands and they might also file a case against you. If you are a service holder, you might lose your job too. It becomes an ignominy for your career as you won’t be able to buy a car or take any other loans.