Student loan problems are on the rise. Currently, our nation is seeing the largest sums of student loan debt in history. Many borrowers have become delinquent or are in default on their student loan accounts. Usually, these problems could have been avoided if loan servicers made better efforts to communicate with borrowers.
The difference between delinquency and default is determined by how past-due a student loan account is. Delinquent accounts turn into default accounts once a payment is two hundred and seventy (270) days or more past-due. The current amount of student loan debt that is either severely delinquent or in default is estimated to be more than $136 billion. That amount is higher than all auto-loans and credit card debt owed by Americans combined!
Student loan debt is a serious problem. Most borrowers wait too long to ask for help. Borrowers who know that they are struggling to make their student loan payments should contact Student Loan Law Group immediately. Waiting until an account is in default is a terrible mistake. Defaulting on student loans has severe consequences such as wage, tax and Social Security garnishment. Before going into default, eligible borrowers may apply for income-driven repayment plans to significantly reduce their monthly student loan payments and to begin the process of student loan forgiveness. Once they are in default, borrowers who would otherwise be eligible for such programs are barred from applying until they have rehabilitated their loans and cured their defaults.
Rehabilitating loans in order to cure defaults so that the borrower can apply for an income-driven repayment plan typically takes nine (9) months or more! Do not wait until your loans are in default to ask for help. Contact Student Loan Law Group today if you are behind on payments on your student loans. The truth is that most borrowers who find themselves in default could have avoided the problem if they had obtained counsel on their eligibility for alternative repayment programs in advance. Student Loan Law Group may be reached by calling 888-843-1706 today.