• Problems with your student loans?

    Education debt swelled to nearly $1.38 trillion at the end of 2017, with 11 percent of borrowers 90 days or more delinquent, according to the New York Fed. Policymakers have sought ways to keep the student loan problem from swelling out of control but have struggled to come up with solutions.

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Consequences

Defaulting on a loan can adversely affect credit for many years. Default typically occurs when a loan receives no payment for 270 days. The loan leaves repayment status and is due in full when the lender requests. New collection costs are added to the loan's balance and the loan becomes drastically more expensive or eliminated through negotiation or legal action.

There are other negative consequences resulting from a defaulted loan. A student who wishes to return to school cannot qualify for federal aid in the United States until satisfactory payment arrangements are made on the defaulted loan or the loan is rehabilitated, a process that can take as long as a full year of on-time payments.

Individuals who are worried that they are unable to service their student loan debt should receive advice and counseling. There are few options available for American students other than payment in full. TheBankruptcy Abuse Prevention and Consumer Protection Act makes discharging student loans through bankruptcy virtually impossible. Critics have noted that this lack of bankruptcy protection for consumers results in a "risk-free" loan for creditors, removing pressure on creditors to negotiate lower payments.

Garnishment of wages and tax refund

In addition, the IRS can take the borrower's income tax refund until the defaulted loan is paid in full. This is a popular way of collecting on loan debt, and the Department of Education collects hundreds of millions of dollars this way.

To object, a written statement must be presented within 65 days of the IRS' notice, and must give evidence of any of the following:
The loan has been repaid.
Payments have been made under a negotiated repayment, or a cancellation, deferment or forbearance has been granted.
The borrower has filed for bankruptcy.
The borrower is totally and permanently disabled.
The loan in question is not the borrower's loan.
The borrower dropped out of school and the school owes a refund.
The borrower Attended a trade school and the school closed.
The school falsely certified the browser as being eligible for a loan.

Defaulting on student loans can also end in a lawsuit. The government and private lenders can sue in order to collect on loans. There is no time limit on suing to collect on federal student loans, and the borrower can be sued indefinitely. Private student loans, in most cases, are subject to statute of limitations laws depending on the state.

Getting out of default

There are rehabilitation programs designed to help borrowers get out of debt. Rehabilitation is a federally mandated program that gives federal student loan borrowers a way to bring their loans out of default. Rehabilitation can reverse the many negative consequences of defaulting on a student loan, and participation is one of the few rights granted to federal education loan borrowers.

Help is available at credit servicez

There are rehabilitation programs designed to help borrowers get out of debt. Rehabilitation is a federally mandated program that gives federal student loan borrowers a way to bring their loans out of default. Rehabilitation can reverse the many negative consequences of defaulting on a student loan, and participation is one of the few rights granted to federal education loan borrowers.
Most crimes can only be prosecuted for limited periods of time, but there is no time limit for collection on federal student loans.
Collection efforts begin soon after you miss a payment. The collection tactics get worse the longer you fail to pay. The most severe consequences kick in only if you default.
If you did not take the initiative to find a resolution for your student loan problems before you started missing payments, you may find that your are now faced with default.
so do yourself a favor and seek help as soon as possible. Credit Servicez can help!

Please call 718-395-7567 to see how Credit Servicez can help you with your student loan issues!