If you are applying for a federal student loan, it shows your prudence to have taken this judicious step. Federal student loan is a good loan product. That is because, having a good credit history to quality for this loan is not mandatory and interest rates are much lower than the interest rates with other loan types. With federal student loans, you will be assured of easy repayment terms and flexible repayment plans. You can take advantage of forbearances or deferments to avoid credit damage.
Take care to keep your federal student loan in good standing. Problems arise, only when it becomes a delinquent student loan. Defaulting on this type of student loan is pretty awful. Payment collection calls and credit history with a defaulted loan report are the most horrifying problems that will keep haunting you down. The credit report remains stained until the debt is not cleared. And, there is no limit to the extent the collection agency can go to collect the due payments.
The borrowers of federal student loans are entitled to certain unemployment benefits. But in a default case, you may lose this advantage. If you get employed after defaulting on the loan, 25% of your net wages may be deducted to make the due payments every month. You can get rid of the delinquent student loan through consolidation, negotiation or settlement. Keep in mind the following basics, when you go to negotiate a settlement with the creditor:
Review the budget with an eye for detail and determine an affordable figure to pay each month
Have a sitting with the collection officer and make him aware of your legal rights to go against his abusive collection activities.
Sketch out a reasonable and affordable repayment plan in discussion with your creditor
Provide the creditor with a valid document on your financial hardships to convince him about your poor economic condition.
Take care to keep your federal student loan in good standing. Problems arise, only when it becomes a delinquent student loan. Defaulting on this type of student loan is pretty awful. Payment collection calls and credit history with a defaulted loan report are the most horrifying problems that will keep haunting you down. The credit report remains stained until the debt is not cleared. And, there is no limit to the extent the collection agency can go to collect the due payments.
The borrowers of federal student loans are entitled to certain unemployment benefits. But in a default case, you may lose this advantage. If you get employed after defaulting on the loan, 25% of your net wages may be deducted to make the due payments every month. You can get rid of the delinquent student loan through consolidation, negotiation or settlement. Keep in mind the following basics, when you go to negotiate a settlement with the creditor:Review the budget with an eye for detail and determine an affordable figure to pay each month
Have a sitting with the collection officer and make him aware of your legal rights to go against his abusive collection activities.
Sketch out a reasonable and affordable repayment plan in discussion with your creditor
Provide the creditor with a valid document on your financial hardships to convince him about your poor economic condition.
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