Distinguish Between Delinquencies & Defaults on Student Loan

1
Distinguish Between Delinquencies Defaults on
Student Loan
2

• Have you been declared as a defaulter by the
  lenders? If you are the one who has missed his
  installment payments for consecutive times and
  think yourself to be a defaulter, then you might
  not be under the misconception. Until you are
  clearly marked as a defaulter by the lenders, you
  are not a defaulter. If you have missed certain
  payments because of some financial problem, it is
  not the issue of default, but a matter of
  delinquent student loan. There is certain range
  of time missing the student loan payment for
  which makes an individual a defaulter. Till that
  range if arrived, no one can be assumed to be so.

3

• Here are some of the points that have not only
  been mentioned to clear the features of the
  student loan delinquency, but also to show the
  difference between the defaulting student loan
  and delinquent student loan
• The delinquent Educational Loan is comparatively
  less serious than default issues. The common
  people hardly understand the thin part that
  distinguishes delinquency and defaults on
  different loans. The defaulters are the ones who
  go on missing the payments either intentionally
  or unintentionally.

4

• The ones who miss some of the payments because of
  the current financial disturbances, but again
  become regular in repaying the debts are
  delinquent student loan borrowers. The
  consequence of delinquency can also be harsh that
  can make getting future credit such as mortgage,
  car and consumer loans, etc.

5

• The students who graduate from college are more
  likely to get involved in the issues of
  delinquent student loan or defaulting loans. They
  do have difficulties in repaying the debts
  because of their time to time expenses and
  sometimes additional costs to meet. The students
  of community colleges and profit-oriented
  students are generally trapped in such issues.
  Both these types of institutions offer
  educational facilities to the individuals who
  belong to the low-income group or are
  non-traditional, who are ultimately the frequent
  borrowers.

6

• It has been established as a true fact that the
  borrowers who obtain more loans and at frequent
  intervals are more likely to get involved in the
  issues of delinquent student loan. Most of the
  times, the individuals take the finances, but
  drop their studies on the middle. In that case,
  without a degree, it becomes difficult for them
  to get a relevant job and pay back the amount.
  This is what compels them to default on student
  loan.

7

• The student belonging to the lower-income group
  does not require taking up the finance to enter
  the college of their desire. The federal
  government, however, make it a must for the
  students to avail its financial facilities
  conveniently, thereby offering comfortable terms
  related to the delinquent student loan issues for
  them.

8

• The students must be aware of the different
  repayment option in order to avoid delinquent
  student loan issues. Well, the borrowers are
  expected to know about these options, but in case
  they don't, there are counseling sessions that
  are held to make them aware of all the repayment
  options so that they could opt for any one
  according to their suitability to avoid defaults
  on student loan.

9
(No Transcript)