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Student Loan Default

There’s a whole host of evidence to show that those who have a degree not only earn more, on average, over a lifetime, than those who don’t, but they also earn it faster and find it easier to get a job. Such loans can fill a funding gap. Often such a gap is created when a student is awarded a Stafford or Perkins loan, and then realizes that the amount in the loan does not fully cover all of the students expenses.

What you do is get the information of all of your debts that you have accumulated that you want to pay off and take them to a consolidation company for student loans. They will then pay then all of for you and now you owe them money. It is not just moving debts around because you get several benefits.

If you have a good job, chances are that a lawsuit will be filed against you. Because you owe the money, you will lose this suit. Once that happens, the collection company will petition the court for a wage garnishment. This will then be presented to your employer. The law requires that your employer send a percentage of your income to the collecting agency before you get paid. The payment ends up being much larger that what your regular payment was.

Well, of course that would be easy for everyone if that was the way it always worked. Yet still some manage to get themselves into a student loan default fix. So for these folks, who are, for one reason or another (and often not of their own doing), unable to manage their budgets, let’s take a look at what the options are.

The good news is that you can rehabilitate your student loan. This is a program that allows you to make nine payments on time within a ten month period. On time payments are considered to be anything that you make voluntarily within 20 days of it’s due date. (If you make a payment as a result of a wage garnishment this does not count.) Overtime and Night-Shifts can be great in reducing bills and bringing in extra cash to your household, if overtime is available, take it and remember to work as many hours possible in a week to help your current situation out.

The most important issue for to realize here is that however hard it is in the short-term, having no student loan default record on file will be much easier in all sorts of ways financial in the future.