Find Ways to Avoid Student Debt and Deal with Defaults

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<h1>Find Ways to Avoid Student Debt and Deal with Defaults</h1><strong> Author: <a href='http://www.articleseen.com/profile_Michel Smith.aspx'>Michel Smith</a></strong><br /><p>Are you concerned about the default of student loan? Are you considering ways to pay off your debt and recover from the financial and legal issues crippling you following the default? Well, before you find out a viable solution to fight the odds, it is essential for you to know the defaulting conditions. Usually, a default with the student loan occurs after you have missed payments for 270 consecutive days. Some of the possible reasons cited for the action are financial difficulties, unemployment, and other personal issues. Since, a default with student debt holds severe consequences, it is essential that you involve proper planning for your educational program. Poor credit rating, wage garnishment, debt collection, and legal action are some of the consequences that follow the default of student loan. Importantly, it is also to be remembered that the default makes the borrower non-eligible for deferment and loan forgiveness programs. The borrowers of the student loan often think that filing bankruptcy might help them through the odds. However, student loans are exempted from being released during bankruptcy with exceptions in rare cases. Therefore, seeking alternative strategies stand as the only way of continuing with the repayment of student debt to avoid default. Clearing off the Debt and Avoiding the Default You, being the borrower should always remember that defaulting on your student loan leaves no choice but to face the harassment that follows. Here is a quick look at some of the practical solutions that come up as great help while trying to avoid a default of student loan – Loan deferment programs Loan forgiveness programs Living with family The loan deferment option allows you to delay the repayment up to three years citing financial restrictions and unemployment issue. Loan forgiveness, on the other hand forgives the debt for some selected professions like, nursing and teaching, provided they have served the community for some years. Living with family, is also considered an excellent alternative, as it cuts down the individual living expenses increasing the income substantially. Avoiding the Debt However, it is always considered feasible to find ways of earning a degree without the hassles of student debt. The idea though might seem challenging is not difficult to achieve. Here is a look at the possibilities – Always plan early for your college education, jumping for a degree without any interest does not serve any useful purpose. Consider taking advanced placement classes by focusing on courses designed for professional success. Take College Level Examination Program (CLEP) in various generic courses, as qualifying those frees your course from the disciplines. </p><strong>About the Author:</strong><br />The author who is Michel Smith write articles on <a rel="nofollow" href="http://www.mydefaultedloans.com/">default of student loan</a> and <a rel="nofollow" href="http://www.mydefaultedloans.com/">student debt</a>. For more information, he suggests to visit <a rel="nofollow" href="http://www.mydefaultedloans.com/">http://www.mydefaultedloans.com</a><p> Article Source: <a href='http://www.articleseen.com/Article_Find-Ways-to-Avoid-Student-Debt-and-Deal-with-Defaults_100767.aspx'> http://www.articleseen.com/Article_Find Ways to Avoid Student Debt and Deal with Defaults_100767.aspx</a></p>

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Keywords : default of student loan, student debt,

Category : Finance : Finance