Federal Student Loan Default
Student Debt Lawyers in New York
What does is mean to default on a Federal Student Loan?
Being in "default" means that you have not followed through with
the terms agreed upon in your promissory note, which dictates a schedule
for your payments. The promissory note is the legal document you sign
when taking out a loan. If you do not make payments on their due dates,
then you are in default.
If you make monthly repayments, you loan is only considered to be in default
if you have missed payments for 270 days.
If you make repayments fewer than once a month, your loan is in default
after 330 days of missing payments (these circumstances are associated
only with FFEL Programs loans).
GET HELP! SPEAK A STUDENT LOAN DEBT LAWYER
OR CALL: (888) 301-0584
HOW IS MISSING A PAYMENT A PROBLEM?
After you have missed your first payment, your loan is delinquent and will
continue as such until all of your payments have been made. The delinquencies
will be reported, resulting in a
negative credit score. A negative credit score will prevent you from borrowing money and will
also increase your interest rates. You might also find it difficult to:
- Register for utilities
- Obtaining home owner’s insurance
- Signing up for a cell phone plan
- Get approved for apartment rentals
Overall, it is essential that you are fully up-to-date with your payments.
Upon arrival of your bill, you must be prepared to start making payments.
WHAT ARE THE CONSEQUENCES OF DEFAULT?
The consequences are numerous and are as follows:
WHAT SHOULD I DO IF MY STUDENT LOAN IS IN DEFAULT STATUS?
Don’t know where to turn? Our attorneys in New York can help you
understand your options for resolving outstading federal student loans,
which may include
loan discharge, or
Once the loans are removed from default status, a borrower would want to
enroll onto a payment plan such as
income-based repayment in order to affordably repay the remaining balance. Our lawyers can help
you identify which payment plans may be available to you.
Contact our lawyers at the number provided below. We can help you build
a plan to resolve your defaulted student loans.
Student Loan Lawyer in New York
OR CALL: (888) 301-0584
WHAT IF MY LOANS ARE IN DEFAULT, BUT I THINK IT’S AN ERROR?
You may be able to fix this problem if at least one of these scenarios is true:
- You are a part-time student.
- You have been approved for deferment.
- There is a possibility that the payments you’ve made were not documented
properly in your account.
If any of these scenarios apply to you, call your servicer to advise them
of the issue.
If you need further assistance, contact our student loan law firm at (888)
301 – 0584.