Help With Defaulted Student Loan

You got a student loan to pay for school, but now that you’ve graduated, you can’t find a job. You’re feeling overwhelmed and depressed, and you’re afraid of what your future holds. The only thing that’s keeping the lights on is the money you get from working at your local coffee shop—but how long will this last? What if something happens to that job? What if you need to take time off because of an emergency? If your income dries up for any reason, then it might be hard for you to keep up with your monthly student loan payments. And if those payments aren’t made on time, there are serious consequences: Federal loans default after 270 days without payment, and private loans typically default after 180 days; once either happens (or both), your lender may try to garnish your wages or file suit against you in court—and even worse than these actions themselves are the other ways they can affect your life long term!

If you have a defaulted federal student loan, you have some bad news coming.

If you have a defaulted federal student loan, you have some bad news coming. The Department of Education will contact you and demand payment on your debt. If they don’t get their money, they’ll garnish your tax refund or other income to pay off your loans. While this may be good incentive to start paying off the debt, it also means that you’ll likely have a lower credit score and less money in savings because of the high interest rates on other loans.

Default on a federal student loan doesn’t mean the debt is gone.

Defaulting on a federal student loan doesn’t mean that you’re done paying. If you default, the government will take action to recoup the money it’s owed, including garnishing your wages, tax refund and even social security.

If you don’t pay back all of your loans, the government can seize whatever assets you have that are worth more than $5,000 (like bank accounts). This can include:

Your vehicle(s)
Jewelry and art collections
Retirement savings

The failure to pay back a federal student loan makes your life harder in other ways.

If you don’t pay your student loans, it can affect you in other ways. You could be sued by a collection agency, or have your wages garnished as income. The government can also take money from your tax refund. If you still don’t pay back the money, then they can sue you and then put a lien on your property.

If that doesn’t work, then they may try to take back assets like cars and houses until the debt is paid off—and even worse than that: there’s the possibility of going to jail!

Your tax refund could be garnished.

The consequences of defaulting on student loans can be severe. You may have your tax refund taken or other financial assets frozen and seized, or a lien could be placed on your property.

If you’re unable to pay back the loan, you may end up paying more in fees and interest than what it originally cost to borrow the money. This will only worsen your financial situation and make it more difficult for you to get back on track financially in the future.

One way that students can avoid having their refunds garnished is by enrolling in an income-driven repayment plan instead of paying off their loans all at once when they first graduate college or university (or after leaving school). These plans allow borrowers who are having trouble making payments due to low incomes keep up with their monthly payments while also giving them time before any penalties come into play if they have missed previous deadlines for repayment plans like IBR/PAYE Plans etcetera

You will pay higher interest rates on your other debt, and it might be hard to get more credit.

Q: What happens if I default?

A: If you default on your student loan, your credit rating will be negatively impacted. This means that it will be harder for you to get approved for other loans and credit cards in the future. If you want to reestablish good credit, it’s important that you contact your lender as soon as possible. They may be able to help lower the interest rate or consolidate some of your debt into one payment so that no payments are missed due to lack of funds (more on this later).

Q: What can I do about this?

A: You may have several options depending on the type of loan(s) in question and where they stand at the time of default (i.e., past due or delinquent). For example, if all other debts are current except for student loans then consider consolidating them with a private lender such as LendKey who specializes in helping borrowers improve their financial standing through alternative data strategies such as income verification which allows customers to present a variety of documents showing income levels which allow them more flexibility when searching for new lending partners while giving lenders access to more data points than traditional credit reports provide.”

You can avoid all of this by getting out of default as soon as possible.

You can avoid all of this by getting out of default as soon as possible. If you don’t, you’ll be stuck with what might feel like an insurmountable obligation while at the same time being unable to take advantage of any federal programs designed to help people in your situation.

You can do this by making student loans a priority and making payments on them first whenever possible. If that’s not possible because of your financial situation, don’t ignore them! Contact your lender immediately so they can work out an arrangement for repayment that works for both parties—you should never be afraid to ask for help when it comes to managing your finances responsibly. If you have several different lenders or servicers, contact them all individually and let them know about one another so they don’t accidentally double dip into the same account or otherwise cause confusion about where money goes each month (and whether or not it’s actually going toward repaying debt).

If none of these options seem viable but still have trouble keeping up with their monthly payments due either because there isn’t enough income coming in or expenses are higher than anticipated, consider getting a short-term loan from family members who would gladly lend some extra cash if asked! Parents especially might appreciate knowing their children will graduate from college without having any lingering debts hanging over their heads while also helping provide support during times when things get tough financially.”

Even if you can’t afford to pay off the entire balance, you can still get out of default by making payments under a loan rehabilitation program or a consolidation program.

A loan rehabilitation program allows borrowers to make a single payment that will completely eliminate any remaining balance and put them back in good standing with their student loans. This is generally only an option for those who were previously in default; however, there are special circumstances where borrowers who were never declared in default may be eligible for rehabilitation.

For those who qualify, it’s important that they understand that rehabilitating their student loans means paying off the entire amount due on their current account—not just what’s remaining after forgiveness (i.e., not just the interest). This means they’ll need to come up with enough cash to cover both principal and interest owed on all currently outstanding debt before being able to move forward with this strategy. However, once completed and confirmed by both parties involved (you and us), we’ll remove any negative marks from your credit report concerning past delinquencies/defaulted accounts so long as these have been resolved successfully through repayment plans outlined above.”

If you don’t qualify for any such program, there’s still hope in the form of an economic hardship deferment or forbearance.

A deferment is a temporary postponement of payments on your federal student loans that’s granted by your lender. If granted, interest will not accrue on subsidized loans during this time period (unsubsidized loans will continue to accrue interest).

Forbearance allows you to temporarily suspend payments on your federal student loans until the next payment due date—which means interest may accrue during this time period. When you’re granted forbearance, your loan holder has the option to resume collection efforts if necessary. Both types of programs are generally only available if you can demonstrate an economic hardship by providing proof (like a copy of recent financial statements).

Don’t ignore your student loans; make them a priority so that you can avoid financial trouble later on.

Don’t ignore your student loans; make them a priority so that you can avoid financial trouble later on.
Student loans are not easy to pay off and if you don’t pay them back, it can have serious consequences for your future financial health. You will be in default if you do not pay back the loan or miss payments for over 270 days (1 year). In this case, it is going to be much harder for you to get credit cards or personal loans because of the negative impact on your credit report. If this happens, rehabilitation programs may help improve the status of defaulted student loans by paying off some of them and lowering interest rates over time through payment plans.

If you have any questions about student loans, we’d love to help. We’re here 24 hours a day, so reach out by phone or email and get the answers you need!

Help With Defaulted Student Loan