10:27 09 May 2013
If for some reason, you cannot afford to start repaying your student loan after you graduate, the first thing that you need to do is to talk to the company which loaned you the money or the educational establishment you attended.
Talking about the reasons why you’re unable to make repayments might help you get an extension of up to three years especially if you’re not employed yet.
Some of your options include “deferment or forbearance” which means temporarily postponing your repayment schedule due to unemployment, economic hardship, re-enrollment, or bankruptcy.
You also have the option to cancel the entire debt permanently. This option is usually offered to government employees who served for 10 years or more and to science and mathematics teachers.
What happens when you default?
If you find it hard to meet your monthly repayments, it is crucial that you talk to the company servicing your loan. Keep in mind that private loans are treated differently compared to student defaults.
If this happens to you, the maturity date on each of your promissory note will be accelerated and payment in full will be immediately due.
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