Ever wonder the number of days you could be late on your student loan payment before you’re considered to be in a default status. Well, you will be in default once your payment is 270 days behind. After you enter default status, the lending institution can come after you with the power of the government. The whole balance of the loan will become due, and you won’t be eligible for a deferment.

There is no statute of limitation on collections. You can't get another loan, and you can't discharge the loan in bankruptcy. The school may withhold your transcripts, and your tax refund will be intercepted. Your credit report will be damaged, your wages can be garnished, collection fees will be included to your balance, liens can be placed on your personal property, your bank accounts and other assets may be seized.

How Do I Get Out Of Default Status?

If you're already in default, you may be entitled to a loan rehabilitation program. Getting into the loan rehabilitation program is ideal. With this plan, you make 12 on-time payments, and then a new lender will buy your loan this will help you with a new payment plan and a reduction in monthly payment.

College students have access to student loan forgiveness programs which will assist them to pay off college debt. Teaching in certain school districts, performing volunteer work or providing medical and legal services, can now help in paying down your student loan debts by trading the skills you learned while getting your degree.

By participating in loan forgiveness programs, you'll have an opportunity to see the world and help others at the same time. Default on your student loan could have a negative effect on your financial and personal life. When you are in default status, you have to take action and use the loan rehabilitation programs that fit your situation. This will help you to move out of default status.

How to Stop a Student Loan Garnishment

If you default on a Federal loan, the Dept of Education has the right to garnish large portions of your wages. The good thing is that you can challenge a wage garnishment and request a hearing on the wage garnishment. To appeal a wage garnishment, you will need to show how the garnishment is affecting you and your family members.

The request for hearing document is used to challenge the garnishment. However, you need to send in the financial disclosure statement document; this document is used to record your expenses and report your income. This document is important during this process. Always ensure that you start off by organizing and collecting all of your documentation to stay in touch with your creditors.

If you are having difficulty in getting this information together, then it isn't wrong for you to contact a document preparation company who we can help borrowers with finding and preparing the documents for the right programs. A student loan can be a daunting task to take care of; don’t be afraid to ask for help from a financial consultant.

Interested in Refinancing Student Loans?

Here are the top 5 lenders to refinance Student Loans in 2018!
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Variable Rate
2.58% - 7.07%

Fixed Rates
3.25% - 7.25%

Terms
5, 7, 10, 15, 20 years

Eligible Loan Balances
Minimum: $5,000
Maximum: None

Logo

Variable Rates
2.69% - 6.01%

Fixed Rates
3.09% - 6.69%

Terms
5, 7, 10, 15, 20 years

Eligible Loan Balances
Minimum: $15,000
Maximum: No Max

Logo

Variable Rates
3.92% - 11.52%

Fixed Rates
6.07% - 12.66%

Terms
8, 10, 12, 15 years

Eligible Loan Balances
Minimum: $2,000
Maximum: Cost of Attendance

Common Bond

Variable Rates
2.55% - 7.10%

Fixed Rates
3.14% - 7.25%

Terms
5, 7, 10, 15, 20 years

Eligible Loan Balances
Minimum: $5,000
Maximum: $500,000

LendKey

Variable Rates
2.56% - 7.94%

Fixed Rates
3.15% - 8.12%

Terms
5, 7, 10, 15, 20 years

Eligible Loan Balances
Minimum: $7,500
Maximum: $300,000