The cost of getting college education and the other higher studies is rising every year. Many aspiring students are therefore seeking help in terms of the student loans. This type of student loans allow them to go for higher college degrees in reputed institutes which they would not have otherwise be able to afford. The benefits of the student loans are several in numbers like the rate of interest is much lower than that of the other traditional loans. The lender organization usually allows the borrower student a longer tenure of time for the repayment of the loan and usually they also allow you to finish the school before you start the repayment of the student loan process. Many a times, there are also student grants available. It is a better thing to get these grants as you need not repay it back. In case of the loans, there is a chance that the student loans in default occur. The defaulted student loans can make a huge impact in your professional as well as personal life for several years of your life. Thus no matter when you make such kind of student loans in default, the impact can really affect your life and also career.
The defaulted student loans have serious impacts like it is sure to damage your credit score and eventually prevent you from getting any loans in the near future unless you repay the previous loan. The longer you are unable to repay the student loans in default, the more damage is done against you. The defaulted student loan eligibility also affects your tax refunds and that may on the other hand lead you to garnish your wages and get you involved into a law suit. There are many ways to avoid the defaulted student loan. One of the most popular ways is to consolidate the student loans in default but then there are certain eligibility criteria that you must fulfill so that you are able to consolidate the defaulted student loans.
The eligibility standards include a good FICO score, you must also pay at least three repayments in full amount, all the due student loans in default must be in their current billing cycle and finally you must wait for at least 6 months from the main and the final date of your graduation before you are termed as an eligible candidate for the defaulted student loans. One of the main benefits of the student loan in default is that you get a reduced rate of interest once you are a graduate. If you want to pay the student loans in default through the automatic method of withdrawal, then the chance of the reduction in the rate of interest is even more than that of the normal procedure. You must also be aware that all of the student loans vary from each other in terms of the various features. Thus it is vital that you get to understand all the features of the consolidation loan before applying for it.