Understanding Delinquent Student Loan
We all know that education plays a very important role in making us successful in life by having a great career. For proper education there is a need for adequate finances. Everyone is not financially self sufficient to bear the cost of education. As a result they have to depend on loans for education no matter whether they are federal loans or private loans. There is no problem in taking loans for education but when students are not able to repay the amount of loan back on time they become defaulters and may have to face severe consequences. However, it is to be noted that before getting defaulted the loans are in Delinquent Student Loan situation. Initially the borrower is in delinquency for a specified period of time but after the period gets over he or she will become a loan defaulter.
Although, delinquency and defaulting both have a negative effect on the life of the borrower but the former situation is not as serious as the latter. A Delinquent Student Loan starts from the day the borrower fails to make the repayment. When the borrower misses a payment the lender is required to inform him or her by sending a legal notice that he or she has missed the payment of loan, within 15 days during this period. Such legal notices are sent to the borrower up to 9 months and after that he or she will become defaulters on the loan taken. It has to be made sure not to avoid such notices because this can lead the borrowers in deep trouble in future. Therefore, it is recommended to contact the lender during the period of Delinquent Student Loan and inform them the reason for not repaying the loan. This might help to some extent in preventing the loan from becoming defaulted.
However, it is to be noted that Delinquent Student Loan is possible only in case of federal loans. In private loans no chances are given to the borrower once their loans get defaulted because their rules and regulations are very strict. Further, there is no concept of Delinquent Student Loan in case of private loans. If a borrower misses a single payment he or she will be categorized as defaulter. Therefore, if you have taken private loans, you must make sure that you repay the loan amount on time otherwise you will have to face severe consequences.
In this way you will definitely be able to handle Delinquent Student Loan efficiently.
Although, delinquency and defaulting both have a negative effect on the life of the borrower but the former situation is not as serious as the latter. A Delinquent Student Loan starts from the day the borrower fails to make the repayment. When the borrower misses a payment the lender is required to inform him or her by sending a legal notice that he or she has missed the payment of loan, within 15 days during this period. Such legal notices are sent to the borrower up to 9 months and after that he or she will become defaulters on the loan taken. It has to be made sure not to avoid such notices because this can lead the borrowers in deep trouble in future. Therefore, it is recommended to contact the lender during the period of Delinquent Student Loan and inform them the reason for not repaying the loan. This might help to some extent in preventing the loan from becoming defaulted.
However, it is to be noted that Delinquent Student Loan is possible only in case of federal loans. In private loans no chances are given to the borrower once their loans get defaulted because their rules and regulations are very strict. Further, there is no concept of Delinquent Student Loan in case of private loans. If a borrower misses a single payment he or she will be categorized as defaulter. Therefore, if you have taken private loans, you must make sure that you repay the loan amount on time otherwise you will have to face severe consequences.
In this way you will definitely be able to handle Delinquent Student Loan efficiently.
