Ways to Prevent Defaulting on Your Student Loan

borrow1-250x183Any debt can be overwhelming, but student loan debt can be particularly frustrating. Trying to budget for tuition costs and living expenses, especially if you’re still looking for a job, can be a nightmare. If you remember that communication is key, however, you can keep the process and your budget manageable.

Defaulting on a student loan can cause ramifications in other areas of your life. You may have trouble signing a lease for an apartment or home, signing up for a cell phone plan, or even getting certain kinds of insurance. Default occurs when you fail to pay on your debt for around 270 days if your payments are monthly, and around 330 days if your payments are less frequent.

If you are concerned about making payments, contact the financial institution your loan is with. They continually handle questions about payment difficulties and can find alternate solutions. It is also a good idea to get in touch with your lender, or use an online budgeting service. They can assist you with debt relief options or determining a way to structure your finances so you can remain solvent.

If you find yourself in default and don’t know what to do about it, call the company. Explain your situation fully. Ask them to work with you. Don’t be afraid to explain your situation to the customer service agents. It’s what they are there for, and they can help you. An Arizona bankruptcy lawyer may also help. The attorney can determine whether your student loans can be bankrupted.