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Defaulting on student loan?

Whitney Matthews

in Student Loans

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1 answer

Nicholas Rivera on March 20, 2018

This is a very unfortunate situation - student loans are almost impossible to discharge in a bankruptcy situation and the negative impact on your credit report felt for years. If it is already not appears in the list of delinquent, contact your lender IMMEDIATELY. If the loans are held by the U.S. Department of Education (i.e., Direct Loans, PLUS loans, Stafford loans, etc), you may submit a patience or deferment to help you get through a difficult financial situation. These procedures do not count against your credit score, although the loans will be accumulating interest, even when you're not making the payments. If the loans are through a private bank, contact the bank IMMEDIATELY. While the private bank is under no obligation to help you, they may be willing to work with you to permanently modify the terms of your loan. If someone co-signed on loans with you, you need to let them know that tonight, for two reasons. In the first place, if you do not pay the loan, your credit score will be affected because they will be held equally responsible for repaying the loan full-time. Second, because this person is a co-signer, he/she is expected to the financial wherewithall to make the payments for you so that you don't default.

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