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If you are having difficulty making payments on your loan, it is important that you contact your loan servicer, they are available to help you. Avoiding contact with your loan servicer will only make the situation worse. Missing payments will cause you to become delinquent and eventually lead to default, both of which have a negative impact on your credit history. Some of the options that may be available to you if you are having trouble making payments include:
- Change your payment plan to a plan where the monthly payments are lower and more manageable
- Postpone your payments properly through a deferment. Deferments are available if you meet certain conditions. Click here to see if you qualify. If you are not eligible for a deferment, you may still be eligible to postpone payments by requesting that your loans be put into forbearance.
You should always speak to your loan servicer to help determine which solution would be best for you. Do not ignore the situation and let your loans go into DEFAULT.
CONSEQUENCES OF DEFAULTING ON YOUR STUDENT LOANS
- The entire balance on your loan becomes due immediately
- Your credit history will be affected negatively
- Your wages can be garnished
- Your Federal and State tax refunds can be seized
- You will incur late fees, more interest, plus court and collection fees
- Legal action can be taken against you, and liens can be placed on your assets
There are many options available to you so that you do not go into default. It is better to take action as soon as you start experiencing difficulties in order to avoid default altogether.
If you have already contacted your lender and/or the Financial Aid Office and are not satisfied with the services that you received, you can contact the FSA Student Loan Ombudsman Group: Telephone: 1-877-557-2575 / Fax: 606-396-4821 /Mail: FSA Ombudsman Group, PO Box 1843, Monticello, KY 42633.
