Student Loan Delinquency & Default | Student Loans | Sallie Mae®

Student Loan Delinquency & Default | Student Loans | Sallie Mae®


Life can bring situations that impact
your ability to pay and manage your private student loan. Here’s what you can
do with your facing challenges: First some definitions: Delinquency is when you fail to make a payment on time. Missing even one payment can make your
loan delinquency. Deferment is when you temporarily postpone or reduce payments
for a specific reason like going back to school or participating in an internship or
residency program. Forbearance is the period when payments are temporarily
postponed under certain circumstances such as financial hardship. Default is
the most severe situation. It means you failed to repay your loan. So what can
you do? Take action. Reach out your co-signer or another
person. They may be willing to help you. Then contact yourr servicers as soon as
possible to learn about available options. For instance, you may be able to change
your payment due date. This could let you pay when you know you have money in your
bank account. You can also ask about payment plans. Depending on your loan
status in your financial situation, you may be able to adjust your monthly
payment amount so it’s more affordable. You may also consider checking with your
servicer to see if you may qualify for postponing your payment through deferment or forbearance. Whatever you do, avoid defaulting on your loan. It can have serious consequences. One potential
consequence of default is being required to immediately pay back the full loan
amount instead of just the monthly payments. In
addition, your default may be reported to the consumer reporting agencies and
stay on your credit report for up to seven years. If you’re experiencing a difficult
situation, let your servicer know as soon as possible. They’re committed to working with you to
help you get back on track. SallieMae.com has tips and
information to make paying your loans easier.

Leave a Reply

Your email address will not be published. Required fields are marked *