16 Apr STUDENT LOAN DEBT: THE DIFFERENCE BETWEEN BEING DELINQUENT AND BEING IN DEFAULT
Juggling student loan debt can be frustrating and confusing. Oftentimes, borrowers do not understand the legal jargon being used in communications from their lenders or collection agencies. Student Loan Law Group can help borrowers decipher this jargon and clearly understand their rights and potential debt relief and repayment options.
Sometimes borrowers believe delinquency and default are the same concept. The two are different and carry different consequences. Being delinquent simply means the borrower is behind on his or her payments. Being declared in default on student loans means the borrower is very far behind on his or her payments – at least two hundred and seventy (270) days late – to be exact! If a borrower missed a payment or did not make a full payment and that payment is less than 270 days overdue, the borrower is in the delinquency stage. The most significant difference between being delinquent and being in default is the options to cure either.
Curing a delinquent student loan account is usually fairly simple. To cure a delinquent account, the borrower simply pays the amount owed and any late fees associated with the overdue student loan payment. If a delinquent borrower is unable to pay the amount and foresees a continuing inability to pay the monthly payment amount on time, Student Loan Law Group can help by analyzing what the borrower’s circumstances and options are. Some delinquent borrowers may qualify for a specialized payment plan that can drastically reduce or even temporarily post-pone a monthly payment. Student Loan Law Group can help delinquent borrowers determine what plans are available and chose the best one to fit their individual needs and lifestyles.
As for borrowers in default on student loans, the process to climb out from default is a bit more strenuous. Once a borrower has been declared in default on their student loans, they face serious consequents such as administrative wage garnishment – where their monthly payment amounts can be automatically deducted from their paychecks. Once in default, it usually takes at a minimum nine (9) months to escape default. Ways to escape default include negotiating settlements, rehabilitation, and repayment programs. Student Loan Law Group helps facilitate these options for borrowers in default on their student loans by negotiating and advocating on the borrowers’ behalves. Student Loan Law Group is a team of attorneys who focus on student loan debt relief and consolidation. These attorneys are one of the most reliable sources to determine the different options available to individual borrowers.