Guidelines to avoid defaulting student loans

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<h1>Guidelines to avoid defaulting student loans</h1><strong> Author: <a href='http://www.articleseen.com/profile_Michel Smith.aspx'>Michel Smith</a></strong><br /><p>Are you a victim of the defaulting student loans? You must be extremely concerned since the consequences of the defaulting loan can be rather serious. Have you considered paying off the loans in some way or the other so that you can avoid facing the financial and all the related legal issues that can follow you after the default? Well, there are many solutions available which can help you fight the odds, but prior to that, you must know the conditions that lead to the defaulting of loans, whether it is a student loan or any other loan. Usually the student loans in default occur when you have not repaid the monthly instalments for a consecutive 270 days. Some of the possible and the most common reasons why most people miss repayments are unemployment, financial constraints and sometimes personal issues as well. Since any kind of defaulting on the loan holds severe consequences, it is extremely important that you plan your educational journey well ahead and with proper planning so as to avoid falling into the trap of the defaulting loans. Some of the consequences of the student loans in default can be poor credit scoring, debt collection by the collectors, wage garnishment and in extreme cases, the legal action taken by the lender against the defaulter. You must also be aware that any kind of defaults also makes you non eligible for deferment or the loan forgiveness programs. Many people have the wrong notion that filing for bankruptcy can help them overcome the odds of the default, but you should know that the student loans are exempted from being released even during the bankruptcy. Thus the best way to avoid Defaulting student loans is to continue with the repayment. When you realize that you are unable to make regular repayments of your student loan, make sure to speak to your lender about the loan deferment programs and the loan forgiveness programs. The loan deferment is an option that allows you to delay the repayment for up to 3 years citing the unemployment and the financial restriction issues. The loan forgiveness forgives the student loans in default for some selected professions like the teaching, nursing etc. provided that you have served the community for a few years. Thus seek alternative ways to avoid defaulting student loans so that you can stay away from the legal bindings and also lead a happy and a prosperous like.</p><strong>About the Author:</strong><br />Michel Smith is a financial advisor who has good information on Defaulting student loans. For information on student loans in default he recommends you to visit www.mydefaultedloans.com<p> Article Source: <a href='http://www.articleseen.com/Article_Guidelines-to-avoid-defaulting-student-loans_132571.aspx'> http://www.articleseen.com/Article_Guidelines to avoid defaulting student loans_132571.aspx</a></p>

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Keywords : defaulting student loans, student loans in default,

Category : Finance : Finance