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

America's Top Student Loan Provider




I Defaulted My Student Loan - What Should I Do
However, there are alternatives to get back on track and obtain rehabilitation of your student loans with proper negotiations with the lenders or collection agencies. Moreover, it is important to find a solution to your default in order to avoid negative consequences on your credit and raise your score again.

Finding Out Your Debt Status

The first step you need to take is to find out your current debt status. In order to do that you will need to contact the state department of education and inquire about your current debt situation. Once you have been told about the standing of your student loans, you will need to contact the lender or the collection agency depending on the condition informed by the state department of education.

Also, you may want to inquire about the Title IV student debt rehabilitation letter. This document will provide you a permit to continue with your studies. It is provided by the state department of education once the lender or collection agencies confirm that your student debt status is back to normal. The whole process can take between half to a whole year, so you may want to start as soon as possible.

Negotiating With Lenders Or Collectors

Collection agencies are usually willing to negotiate new terms on your debt and the actual lenders will also be willing to negotiate with you since they would otherwise have to sell the debt to collectors at a much lower price. Therefore, no matter who holds your debt, you just need a smart approach and to show that you are willing to get back on track with your student debt payments.

You will reach an agreement with the debt holder and you must make sure that you will be committed to repay your debt because you will not get another chance if you default again. Also, make sure that the state department of education is notified of the timely payments of your debt. Six consecutive and timely monthly payments are needed to obtain the rehabilitation but it may take a month or two more for the whole process to be finished.

Who Is Responsible For Paying Of Debt

This question often rises when it comes to married couples. If your spouse did not apply for the loan, he or she is not responsible for the repayment. The only chance that the lender has to hold someone else responsible for repayment is when the other person applies jointly or as a co-signer. Otherwise the cancellation of the student loan is a personal responsibility of the debt holder.

We point this out because some collectors and lenders try to gather information about other members of the family for their collection practices. And you should be well aware of the fact that they cannot require that information as part of the agreement if the other person did not apply for the loan.

The only documentation that you may be required to submit is your own and is limited to proof of income, residence and other documentation to back up the information you provide like unemployment certificate or payment stubs from your employer.



 


Article Title : I Defaulted My Student Loan - What Should I Do
Comment not found for this article.
 
Comment

Related articles
• Paying Up Student Loan Made Easy
• Consider Federal Student Loan Consolidation
• Student Loan Debt Consolidation - A Fresh New Start To Help Eliminate Stress
• Student Loan Consolidation - An A+ Idea
• About Your Student Loan Debt Consolidation

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!
I want to thank you for you help and patience in dealing with me. You've explained everything perfectly and I feel confident in doing business with you. I hope that if needed, we can do business again in the future.
- Victor R.  New York, NY
* 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
Forbearance is a temporary postponement or reduction of the payments on your consolidation loan for a period of time due to financial difficulty.
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