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. Source: http://www.sooperarticles.com/finance-articles/loans-articles/distinguish-between-delinquencies-38-defaults-student-loan-599505.html https://www.facebook.com/AvanseEducationLoan https://www.linkedin.com/company/avanse-financial-services https://twitter.com/avanseeduloan https://www.youtube.com/channel/UCcsuUx1EH1C08XmX2embpug