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Student Loan Pitfalls : eBook

Student Loan Pitfalls
PDF eBook
Pages : 9
Language : English
File Size : 174 KB Instant download after payment $0
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Introduction


The student loans just like the other forms of financial aid are a service that is subject for repayment. However, although aware of such fact, many borrowers still fall to the trap of walking away from student loan debt which then results to series of consequences.

They tend to ignore their being summoned to enter repayment usually either 90 or 120 days after separating from school or after dropping below half time enrollment. With this, the loans remain delinquent for 270 days or become 270 days past due at any time, leading the loans to "default" status.

Student Loan Default, Defined


Defaulted student loans are actually defaults made by the borrower to the creditor of the terms and conditions of the student loan contract. It is usually caused by the act of escaping from debts, leading to unfavorable consequences on the part of the borrower.

Basically, prior to the declaration of student loan default is the delinquency period. At this period, the lenders of student loans authorized under Title IV of the Higher Education Act will exhaust all efforts to find and contact the borrower.

If the lender's efforts of locating the debtor are unsuccessful, the loan will then be placed in default. It will be turned over to either the state guaranty agency or the Department of Education. And, once the loan enters the default status, the maturity date is accelerated, making the overall payment in full due right away.

File Type : eBook PDF eBook
Pages : 9
Language : English
File Size : 174 KB Instant download after payment $0
Pay with Credit Card / Debit card / Paypal
FREE Download


Short Description: The student loans just like the other forms of financial aid are a service that is subject for repayment. However, although aware of such fact, many borrowers still fall to the trap of walking away from student loan debt which then results to series....
Keywords : students, student loans, loans, education, Home and Family
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