Loan Delinquency
If you fail to make monthly payments as due on your student
loans, you become delinquent. Delinquency
can be reported to credit bureaus. A delinquency notation
remains part of your financial history and could
affect your credit rating. Repaying your loan on time helps
you to establish and maintain a good credit rating, which
is crucial when you want to buy a home or a car.
What happens if I am delinquent?
When you become delinquent, your student loan holder
and guarantor will send you multiple letters and
make consistent telephone calls to you. Late fees may
accrue. Don’t ignore these calls and letters. Ask for
help from your loan holder right away! Don’t delay!
Your loan holder will look at your unique situation and
offer several solutions to help you.
What can I do?
Perhaps one of these options will benefit you.
| Repayment Plan: | Standard, Graduated, Income Sensitive, Extended. |
| Deferment: | Deferment is a postponement of repayment under various, specific circumstances. |
| Forbearance: | If you are not eligible for a deferment you might be granted a forbearance for a limited and specified period. Payments are temporarily postponed or reduced. |
| Consolidation: | This can simplify repayment by combining several types of federal education loans into one loan. You make one payment a month, which might be lower than what you are currently paying. |