Know the Difference between Delinquent and Defaulted Student Loans

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<h1>Know the Difference between Delinquent and Defaulted Student Loans</h1><strong> Author: <a href='http://www.articleseen.com/profile_Michel Smith.aspx'>Michel Smith</a></strong><br /><p>Borrowing debts as student loans is quite a profitable deal, because in the end of your studies with the borrowed loan amount, you get to a job, right?? But, is that really so easy to avail a job in this very situation of recession, inflation and unemployment. Moreover, if you still manage a job, it pays so less that returning the borrowed loan amount turns into a difficulty. It leads you towards delinquent student loans, and if the situation worsens too much, it drops you into the troubles of defaulted student loans. Often, the students fail to understand whether they are just delinquent with the loan amount or already in default. Then, I should clear you that you get defaulted only when you fail to make the repayments for 9 months. The defaulter tags can also be given by the lender, if you fail to meet other terms of the loan contracts. The delinquency period begins from the very first day when you fail to make your repayments on time. During this period, your lender needs to fulfill certain responsibilities too. Like, he must send you a notice informing the matter within the first 15 days. He should also help you by suggesting some useful ways, so that you can return the amount. But, still if you continuo to your delinquency, it goes to default. Delinquent student loan is not such a greater offense as defaulted loan is. During your delinquency, you still have the chance to cope up with the situation by returning the amount. But, when your case turns into a default one, difficulties started. The lenders can start garnishing your paychecks. Their repeated calls and visits often bring disturbances in your professional and personal life. It can also drop your credit scores, which will indicate towards your poor financial life and for that you won’t be able to get anymore financial assistance until you return the amount. If the situation turns against you, there remains a chance, where the lenders can try to ban your professional license too. Seems difficult, isn’t it?? Then, you should try to make your repayments on time to avoid the consequences of defaulted student loans. If you cannot make it anyhow, then you should go for defaulted loans assistance. There are many such organizations available, which provide defaulted student loans help. But, it is always better to stay prepared from the time of delinquent student loan, so that it doesn’t bring you greater difficulties.</p><strong>About the Author:</strong><br />The author who is Michel Smith write articles on <a rel="nofollow" href="http://www.mydefaultedloans.com/">Delinquent student loan</a> and <a rel="nofollow" href="http://www.mydefaultedloans.com/">defaulted student loans</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_Know-the-Difference-between-Delinquent-and-Defaulted-Student-Loans_106124.aspx'> http://www.articleseen.com/Article_Know the Difference between Delinquent and Defaulted Student Loans_106124.aspx</a></p>

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Keywords : delinquent student loan, defaulted student loans,

Category : Finance : Finance