Having a defaulted student loan on your credit report can plunge your credit score to distressful lows, dragging you down along with it. You may feel that you have reached rock bottom and will be there for a long, long time. You are not alone; misery does love company.
But there is hope. You can gain back the privileges you have lost and may even have the defaulted student loan entry on your credit report removed.
Here is some helpful advice that you should consider seriously:
1. Verify accuracy of the defaulted student loan. You may be surprised to find out that several entries leading to the default are not accurate. Student loans usually get transferred from one lender to another due to refinancing. If you find any discrepancies or transactions that were not legal, you can challenge the entries and have your loan reinstated.
2. Rehabilitating your student loan can have it reinstated and the negative entry pertaining to your defaulted student loan taken off your credit report. To do this you must be able to make 9-12 consecutive monthly payments.
3. The pay-off option is another sure way to get your credit report cleaned. It may not be the best option considering your situation, though.
4. You may avail yourself of the Direct Loan Consolidation. It offers students a means to repay their defaulted student loans with low and controlled interest and up to 25 years of repayment schedule. Once you have availed of this loan consolidation option you may opt for deferment or forbearance.
The drawback to this type of consolidation is that the amount of the loan is increased to include the unpaid interest, and after interest is charged on the accrued interest, the loan balance can increase significantly.
But there is hope. You can gain back the privileges you have lost and may even have the defaulted student loan entry on your credit report removed.
Here is some helpful advice that you should consider seriously:
1. Verify accuracy of the defaulted student loan. You may be surprised to find out that several entries leading to the default are not accurate. Student loans usually get transferred from one lender to another due to refinancing. If you find any discrepancies or transactions that were not legal, you can challenge the entries and have your loan reinstated.
2. Rehabilitating your student loan can have it reinstated and the negative entry pertaining to your defaulted student loan taken off your credit report. To do this you must be able to make 9-12 consecutive monthly payments.
3. The pay-off option is another sure way to get your credit report cleaned. It may not be the best option considering your situation, though.
4. You may avail yourself of the Direct Loan Consolidation. It offers students a means to repay their defaulted student loans with low and controlled interest and up to 25 years of repayment schedule. Once you have availed of this loan consolidation option you may opt for deferment or forbearance.
The drawback to this type of consolidation is that the amount of the loan is increased to include the unpaid interest, and after interest is charged on the accrued interest, the loan balance can increase significantly.
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