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What happens if you fail to pay your student loans?

Ashley Howard

in Student Loans

1 answer

1 answer

Dana Keller on March 29, 2019

In the united states, if you do not pay the Federal government Guaranteed student loans, the loans will eventually become default. Once the loans are in a default status, the Dept. Ed. you turn them over to a collection agency. The collection agency has the right to garnish your wages, keep your tax return, and, of course, call you incessantly. The consolidation of the loans can avoid default, allowing the borrower receives an income-sensitive payment plan that can fit any budget. You can get help with the consolidation by clicking on the link at the bottom of this text box.. Response: . This is only partially correct. When loans in default are referred to a collection agency who will attempt to collect the loans by the state and federal law. this will include contacting you by mail and by phone. You can make a phone call a day, Monday to Saturday. That is until you are notified in writing never to contact you by phone again. In this case only be in contact with you by phone if there is no other way to notify you of any changes in the status of the account.. with the time they may attempt to seek legal judgment to facilitate other means of collecting the debt and extend the period of time in which the debt can be collected.. Depending on the date of the initial loans were signed, there may or may not be a specific period of time allowed for the collection of student loans. Your best bet is to contact an attorney who specializes in debt collection procedures.

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