The Center For Debt Management
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Student Loan Debt

Your Student Loan is a Legal Obligation.
Don’t Ignore The Debt. It Won’t Go Away!

Your student loan debt is a legal obligation and can be a 10 to 30
year financial commitment. Don’t ignore the debt. It won’t go away!

There are ways to get help, including changing your payment due date, repayment options, deferment or forbearance.

Why is missing a payment a problem?
If you don’t make your payments on time or if you start missing payments—even one—your loan is considered delinquent and late
fees can be assessed. If you are making late or partial payments, contact your lender or servicer immediately for help. If you don’t make payments for more than 270 days, your loan will default and your credit rating could suffer. If your credit rating is affected, you
may be denied future education or consumer loans, and you may
not be able to obtain a mortgage or rent an apartment.

What is a deferment?
A deferment is a period in which repayment of the principal balance
is temporarily postponed if you meet certain requirements. During
the deferment period, if the loan is subsidized, the government pays
the interest charged.

For unsubsidized loans (including PLUS loans), you're responsible
for the interest that accrues during the deferment period.

If you have unsubsidized loans, when you resume making payments at the end of the deferment period, unpaid interest will be capitalized (added to the principal balance).

If you do not meet the requirements for a deferment, you may still
be eligible for forbearance.

What is forbearance?
Forbearance allows you to postpone or reduce your monthly payment amount for a limited and specific period if you are temporarily unable to make your scheduled loan payments for reasons including, but not limited to, financial hardship or illness.

You must request forbearance from your loan holder.

You're responsible for the interest that accrues during forbearance
on all loan types, including Subsidized Stafford Loans. When you resume making payments at the end of the forbearance period,
unpaid interest will be capitalized (added to the principal balance).

Your loan holder is required to grant you forbearance, but only
under certain conditions.:

Loan Discharge or Forgiveness
Some employers such as state or local governments offer loan repayment in return for working in a job that’s in great demand
. There are also programs offered by some schools that will assume
a portion of your debt. If loan forgiveness is something you’d like
to explore, begin by asking at your school or workplace.

Forgiveness of a loan is based on the borrower performing certain services such as teaching in a low-income school. A defaulted loan can’t be canceled based on qualifying service (e.g., teaching).

The Smart Way To Choose Student Loans

Acquiring a student loan can really be confusing. If you have good credit or a co-signer with strong credit, we suggest that you first check out Simple Tuition. It is an excellent resource of reliable information. When getting a student loan you have to make sure that you get it right the first time. Learn more at Simple Tuition.


Student Loan Articles

Student Loan Repayment Information

Postponing Your Student Loan Repayment

Paying for College ... The Smart Way

Student Loans: Avoiding Deceptive Offers

Student Loan Consolidation

Public Service Loan Forgiveness


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