College Loan Consolidation, Federal Loan Consolidation, Private Loan Consolidation, Student Loan Consolidation

America's Top Student Loan Provider




How To Recover From A Student Loan Default
No one plans to default on a student loan but it does sometimes happen due to an unforeseen negative event in your life - a personal tragedy, a severe illness, etc. Having a defaulted loan to contend with in addition to whatever event happened to you is another severe blow. However, don't neglect dealing with it. You must become proactive in resolving your finances.

Defaults on a student loan occurs after it has gone unpaid for two hundred and seventy days in the case of a loan repayable in monthly payments or three hundred and thirty days in the case of a loan repayable in less recurrent payments. When a student loan meets the criteria for default, the lender will exercise "due diligence" meaning that they must make a serious effort to find you and negotiate how you will repay the debt. If those efforts are unsuccessful, the next probable step for the lender is to place your student loan in default with your state's guaranty agency.

At the time a student loan is judged to be in default, the terms of the loan may be accelerated and the entire balance becomes due and payable, with principal and interest, at that point. After such time as your defaulted student loan is sent to your state's guaranty agency or The Dept. of Education to be collected, one of several things can happen. Defaulted student loans carry the possibility of being added to your Federal Income Tax. While you have the right to contest the ruling, you cannot stop the resulting withholding of funds while you seek resolution. Refunds that are due to jointly filing couples can be subjected to withholding for repayment of the defaulted loan, The spouse who is not involved in the default can recover their portion by filing an "injured spouse" claim with the Internal Revenue Service. Social Security benefits, if any, may also be liable for withholding up to fifteen percent of the gross amount payable.

If the defaulted student loan is held by a private lender, the amount of the default may be increased by collection fees.

There is nothing in the law that prevents the government agencies using private collection agencies but normally they do not follow this avenue of collection. In addition to these steps, your wages may be garnished. This will reduce your gross receipts from your employer by 10-15%. Your employer then remits the proceeds of garnishment to the lender.

Before you allow your defaulted student loan to follow these normal but punishing steps towards collection by the lender, examine a Federal Loan Consolidation Program. This step would reduce your payments and possibly spread them over a significant period, even as much as thirty years. You need to recognize that your future financial well being is at stake. If you are fast approaching a default or have defaulted on a student loan, call the lending institution and arrange a meeting to discuss ways to deal with your problem Your willingness to become proactive and seek an arrangement that will work for both sides has a good chance of success. Own your future by taking control of your finances and finding a way to remove the stain from your credit history and to take care of a default or near default situation.



 


Article Title : How To Recover From A Student Loan Default
Comment not found for this article.
 
Comment

Related articles
• Student Loan Debt Consolidation - The Effective Solution For Eliminating Debt
• Student Loan Changes Can Be For Better or Worse
• Consolidating Student Loans - The Major Benefits
• Discover How To Beat The I.R.S. With A Student Loan Interest Tax Deduction
• Credit Repair - Student Loans

Share this story:
  • BlinkList
  • blogmarks
  • del.icio.us
  • Digg
  • Facebook
  • Google
  • Sphinn
  • MySpace
  • NewsVine
  • Simpy
  • StumbleUpon
  • Technorati
  • E-mail this story to a friend!
  • Print this article!
  • Faves
  • Furl
  • Netvouz
  • Slashdot
  • Spurl
  • Yahoo! Buzz
 



EdFed introduces… Awareness… Learnal
At, EdFed, we proudly introduce 'articles on student loans' and 'Learnal - the journal to learn from', our free newsletter on student loan management, which is sure to keep you informed of the latest events and happenings in the student loan market. To receive your copy of the above just use the RSS feed below and add this to your "My Yahoo", blogs, newstickers, and other similar channels accepting distributable content.
Click here to sign up for our Weekly Newswire now!

How EdFed Helped others!
EdFed helped me to consolidate my private loans at a low interest rate and reduced my monthly payments by $87.00 Their loan specialist were very knowledgeable and helped me through the entire process . I have recommended them to all of my colleagues.
- Frank P.  Montpelier, VT
* Your Name: * Your E-mail Address:

We respect your privacy.
* Your Friend's name: * Your Friend's E-mail address:
Include a Message:
+ Privacy Policy

Student Loan Consolidation Info - How to Choose the Right Loan Company

This column is sponsored by Granted, America's top job search engine. The Career Resources column is presented by Granted, America's leading job search engine dedicated to getting people jobs.

Education is one of the most basic right of any human, but with the increase in prices and the costs involved in education this has made these rights turn into a privilege which very few can enjoy. Any normal person today in the whole of United States has to take an education loan at one point of time to pay for their education fees.

read more
CONSOLIDATION NEWS
Schools Will No Longer Receive Paper FAFSA Forms
(September 20, 2007)

news desk
CALCULATORS
Stafford Loan Payment Calculator
PLUS Loan Payment Calculator
Loan Consolidation Payment Calculator
Articles
Calculators
FAQs
Glossary of Terms
Loan Comparison Chart
Scholarship Search
If you don't know who currently holds your loans, we can find lender names and addresses for you. Give us a call at 800-821-5659--this information is free, and you will be under no obligation.
US School Directory
Comprehensive List of Schools at which EdFed Assists Students.
EdFed is a FFELP lender with lender identification number 834241.
© Copyright 2020 EdFed. All Rights Reserved.

Home · About Us · Contact Us · News · Sitemap
Career Advice · Tell a Friend · Privacy Policy · Resume Service
Resume Distribution Service · Post Resume · Job Search Course
EDFED NEWSLETTERS
Sign up for the latest news on student loans.
Email Address:
+ Most Recent Newsletter
+ Newsletter Archives