Defaulting on student loans doesn’t mean your credit will be destroyed for life. While missing or forgetting to pay your debts, a default will show up on your credit report and certainly do reduce your credit score.
If you are in default, you need to take action and effort to get back on track. Student loan default is not pretty, as it can indicate wage garnishments, license revocation, and more. And worse, your student loan debt can even get you terminated from your current job.
However, there are steps you can take to get the default removed from your credit, and these are the following:
Choose on Loan Rehabilitation, Loan Consolidation, or Paying in Full
The fastest way is to pay off your student loan debt in full. For many, this is usually not a practical solution, so student loan consolidation or rehabilitation is the best for you. Before considering these options, you should evaluate whether you are qualified to cancel your loan debt.
Prepare Your Finances
Preparation is the key as you will need to make consistent and on-time student loan payments for a set of time.
Contact Your Reliable and Trustworthy Loan Servicing Company
You will need to contact your loan servicer or holder that you want to enter a loan rehabilitation or consolidation. Your loan servicer will determine the monthly payment amounts that suit you best.
Make Nine (9) Voluntary, Reasonable, and Affordable Monthly Payments
After you have completed your application and it has been approved, you will begin making your payments based on your financial status. You must make nine (9) consecutive payments in ten (10) months and must be within 20 days of the said due date.
Take Action After Your Final Payment
Now that you are in the loan rehabilitation program, you should ensure you never miss a payment by signing up for automatic payments. Auto payments will draft your payment from your bank statement every due date of the month. Just be sure your bank account has enough money to cover your monthly loan payment.
Getting out of default is the best thing you can do if you haven’t been paying your student loan debt. Student loan rehabilitation is the better way to make it happen, but the other options are good as well.
To learn more or need assistance in getting your student loan out of default, give DocuPrep Xpress a call today!