Default Happens. Staying There Is Optional

Default is a big problem affecting millions of Americans. In this week's blog series we'll cover what options borrowers have when it comes to getting out of default and avoid garnishment.

Falling behind on your student loans can feel overwhelming, but understanding what happens in default is the first step toward taking back control. Federal student loans enter default after 270 days of missed payments. At that point the entire balance becomes due, collection costs can be added, and your loan status is reported to credit bureaus. This can result in a major drop in your credit score, limited access to new credit, and difficulty qualifying for major purchases.

Default also removes your eligibility for federal repayment plans and puts you at risk of wage garnishment and seizure of tax returns. Many borrowers do not realize that they still have options even after default.

You can resolve the situation by entering a rehabilitation program, consolidating into a new loan with an income driven plan, or working directly with your assigned collection agency.If you are behind or already in default, the best step you can take is to get informed.

Smart Loan Aid helps borrowers understand their options and find the resources that fit their situation. A short call with their team can prevent costly consequences and help you move toward a fresh start.

Learn more about rehabilitation plans and resolving your delinquency before garnishment by visiting https://SmartLoanAid.com today or give their team a call at (844) 869-5521