Do you know the consequences of defaulted student loans? They are:
* Your wages are garnished by the lenders
* Tax refunds get suspended.
* Credit scores get ruined.
* Professional license can be cancelled.
* Anymore financial assistance will be dismissed.
* Scaring enough, isn’t it? Therefore, you need student loan help.
Fortunately, if you have federal student loans, the options for you to avoid the above-mentioned unpleasant positions are:
Dropping the repayment amount
The time period of 10 years is the standard repayment term for federal student loan, if needed government allots several alternative plans which lower the payments.
Extending repayment period
In this process the term for returning the loan amount is increased to 25 years. This is applicable only for the students who have at least $30,000 loan amount.
Here, you get to pay minimum interest amount for the first 4 years then your installment amount is gradually increased so that you finish your payments within 10 years.
Repayments based on income
This program is designed to meet the requirements of the individuals. Here, the repayment amount is decided based on the salary of the borrower. This is limited for some students.
Postponing the repayment dates
This is for the graduates who are out of job for long or has no job or has a job which pays them so less that they cannot manage to afford the loan amount. This is done following the under mentioned two repayment options, such as:
Deferment: Depending upon the economic hardship of the students, their repayments are delayed for 3 years.
Forbearance: Here the repayments are postponed temporarily.
Student loan help is a must whenever you stuck around the repayments of the loan amount. Therefore, contact your federal loan lenders as fast as possible and ask for help to get back into the real flow of life.