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What will happen if a person defaults on a school loan?

Ashley Howard

in Student Loans

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William Cain on October 26, 2018

Payment Options Borrowers in Arrears to Make a payment Student loans are due in full at the time of default. Meeting that financial obligation can be a challenge, so orschäffer a variety of ways for you to get back on track. Remember, by repaying your debt you avoid many of the collection activities we are required by law to perform. And enjoy certain benefits. . You may be eligible for more student aid. . Your state and federal tax refunds or other federal payments will not be taken. . Avoid having your wages garnished. . You pay less interest and commissions. You can find a payment option that will work for you by calling ECMC at 800.367.1589. Here are some options to consider: Payment in Full Provides the most immediate benefits and can save you more money over the life of their loans. The benefits of payment in full: . You pay the least overall because less interest accrues. . You can avoid the expense of collection costs if you pay in full within the first 60 days delinquent. . Your credit report is updated faster than through other programs. Rehabilitation loans, The Federal Loan Rehabilitation Program is an excellent benefit we are proud to offer our eligible borrowers. The rehabilitation of your defaulted student loan, it means establishing and maintaining a repayment agreement with ECMC. Once you have made nine consecutive on-time monthly payments, the loans may be eligible for rehabilitation. When you rehabilitate, your loans are transferred to a lender and any negative credit remarks reported by ECMC and/or EdFund/CSAC will be deleted from your credit history. Effective August 14, 2008, loans can only once rehabilitated, so it is very important to maintain your good payment status with your new lender. If you are interested in this program, please contact one of our account specialists to set up the payment agreement. You can also complete this process online. Only the interest, Even if your monthly payment does not qualify for the loan rehabilitation, and will not ensure you avoid tax offset or administrative wage garnishment, it is always wise to keep interest charges that accrue on your debt. Consolidation Replaces several loans with a single loan, with an interest rate and a payment schedule. To learn more about consolidation or to discuss your payment options, call our staff in 800.367.1589. Please be prepared with your: . ECMC account number or Social security number . Current address . The number of the phone . The financial information, including income and expenses .


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