National Debt Relief Talks About Deferment And Forbearance On Student Loans
Miami, FL (PRWEB) January 09, 2015 -- National Debt Relief recently shared in an informative article published January 8, 2014 for student loan borrowers to understand more about deferment and forbearance. The article titled “What You Need To Know About Student Loan Deferment And Forbearance” points out what differentiates one from the other and how a borrower qualifies for them.
The article starts off by by talking about how student loans has slowly become one of the most dangerous credit obligations of all time. It is an unsecured type of debt but student loan borrowers will find it hard to discharge this from bankruptcy. It is not at all impossible but not a lot of borrowers succeed in student loan bankruptcy.
Falling delinquent and spiraling down to default has grave consequences on the borrower. First one is that the credit history is affected and the score can plummet down. This can prevent the borrower from enjoying low rates in the future. The borrowers can also find that their loan balance increase over time because of all the collection fees added on to the capital.
There are also a number of student loan lenders who will not think twice on filing legal suits against borrowers who have fallen behind on their payments. The federal government also has an extensive collection power that includes the ability to garnish wages and even take a portion of the social security benefits and apply them as payment without the need for a court order.
This is where deferment and forbearance comes in to help borrowers prevent to getting to that point in their life. These programs allows the payments to momentarily stop and keep the account current. The one thing that borrowers need to be wary about when enrolling under this program is the accrual of interest payments.
The article explains that with deferment, the government will continue to make interest payments on subsidized student loans but those unsubsidized will accrue the payments on interest. But for forbearance, the interest payment for both subsidized student loans and unsubsidized student loans will accrue.
To read the article, click this link: [http://www.nationaldebtrelief.com/need-know-student-loan-deferment-forbearance/
Paul Ritz, National Debt Relief, http://www.nationaldebtrelief.com/, +1 888-703-4948, [email protected]
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