Student loan debtors do have options in solving any problems with repaying student loans. If such debtors are overwhelmed or unable to afford a monthly payment, they should immediately contact the loan servicer. The servicer should provide information regarding any available and recommended options to reduce or postpone a payment while maintaining a loan in good standing. This article provides some tips for maintaining a student loan in good standing.
The worst case scenario for a student loan debtor is to stop making regular due payments on a student loan. Late or missed payments may negatively affect a credit score, thus potentially decreasing any future likelihood of receiving approval for a car or home loan. Missing multiple payments and defaulting may even cause the garnishment of wages or the withholding of a tax refund.
Choosing a suitable, affordable repayment plan, if possible, will help maintain regular payments. The term of a student loan determines the monthly payment and, of course, the extent of time it will take to repay the loan. Some student loan debtors may be in a financial position to pay off the loan as quickly as possible. Some may not.
Student loan debtors may ensure that they never miss a payment by registering for automatic monthly payments. This may allow student loan debtors to receive a 0.25% reduction of the interest rate of the student loan.
After all, interest accrues on a student loan each and every day. To avoid interest, if possible, student loan debtors should make regular payments over and above the minimum monthly payment amount. Student loan debtors should inform their loan servicer that it should not apply the extra payments to future payments, but to present payments and to the highest interest rate loan. This will reduce the total cost of the student loan over time.
Finally, student loan debtors should absolutely avoid ads on social media and the internet, as well as solicitations including phone calls or letters that offer to help lower a student loan payment or obtain loan forgiveness. Such services are typically expensive scams that provide little or no assistance. Because the U.S. Department of Education or its loan servicers never charge for such services, student loan debtors should contact their loan servicer for free student loan help and avoid all scams solicited by unknown parties. A Fort Lauderdale student loan attorney may also provide invaluable assistance.
Schedule a free consultation and call 954-523-HELP (4357).