Student loans can be tricky, especially when they add up and you can’t afford to pay. So, what should you do when you’re going to default on your student loan payments?
If you know you’re going to become behind on your student loans, you should absolutely find student loan default help getting student loans out of default sooner than later. If you find the proper resources, you can get help with default student loan assistance before it’s too late.
Delinquent Student Loans: How Do I Know Where I Stand?
Your first step to avoiding student loan delinquency is to gain a better understanding of the full picture. Research and write down the types of loans you have, how much you owe on each, your student loan provider and call them to find out if you are already delinquent on those loans if you’re unsure. If you are delinquent, it’s also important to know how delinquent you are.
Once you know the status of your student loans, give you loan providers a call to find out how far past due you are and what options you may have. At this point, you may hit a wall. If that happens, contact us right away to get help with your situation.
If You’re Not Yet in Student Loan Default
Lucky you, you’re not in default yet! That means you have quite a few more options than if you have already defaulted on your student loans. Forbearance is the quickest way to resolve potential student loan delinquency; however, the option can be expensive. If you want to go with that option, you can often even get approved over the telephone.
Deferments on student loans may require an application, but you can often fill out the forms from your student loan providers website to help save time.
You can also call your student loan provider at any time to discuss lower payment options to help you combat potentially defaulting on your loans.
How to Get Student Loans Out of Default
When looking for default student loan assistance, you need to find experts who are well-versed in the language of student loans and have experience dealing with how to get student loans out of default.
The types of student loans you have make a difference in terms of options. Whether you’re already in default makes a difference in relief options when it comes to both federal and private. In terms of federal loans, it’s important to know options that default options decrease the more delinquent you are – which is why it’s important to get help before reaching that point.
Luckily, even if you are already in default, there are options that may help. Loan rehabilitation and loan consolidation are common options. Beginning a loan rehabilitation program within 60 days of default (and complete the program within the required time frame given, usually 10 months) can significantly help – so timing is especially important in this case.
A big factor in qualifying for bankruptcy in general is your net worth, which takes assets and liabilities into account. This includes cash reserves, stocks, vehicles, etc. There are certain cash assets that can be considered off limits for student loan servicers to pursue for repayment, such as life insurance dispersments and even legal awards. In the latter, one student was able to exempt cash awarded from a personal injury settlement with the help of skilled bicycle injury attorney. Special circumstances persist, so it’s best to speak with legal counsel in that specific area.
Does the Type of Student Loan Make a Difference?
In short, yes. Federal student loans safeguard students by providing extra options that private loans often do not have available. Generally speaking, there is more flexibility with federal student loans than private student loans.
Because federal student loans have more flexibility, students (or previous students) struggling with both types of loans (private and federal) are generally advised to tackle paying off private student loans first while lowering their federal loan payments as much as possible. That gives you the option to focus on one type of loan repayment, private, since federal loans are much more forgiving. Confusing, right? Talk with a student loan lawyer to get the clarification you need for your situation.
Unfortunately, private, state and institutional loans generally do not have the same repayment flexibility options that federal loans are able to provide. Some of these types of loan providers do offer limited forbearance and there’s often a fee.
In the cases of private, state and institutional loans, some providers may offer interest-only payments temporarily or, if you can prove hardship, interest rate reductions may be an option. Often times, the best long-term solution may be consolidating your private student loans in order to lower monthly payments.
Everyone’s situation is different and the options to resolve student loan delinquency are not one-size-fits-all. But, regardless of the types of student loans you have and whether or not you have already defaulted on them, there are always options available. The most important thing to do is create a plan to help you get out of the situation and, to do so, first understand all the options available to you.
Contact Shaw Defense for Student Loan Default Help
Call to schedule a free consultation with Shaw Defense to get default student loan assistance. We’re the experts on helping with delinquent student loans, which is why you should contact us today to see if we can help you resolve your student loan situation.