Borrowers must avoid being officially labeled as ‘delinquent’ which happens when you are 90 days behind on your repayment. This can seriously take a hit to your credit ratings. That consequences of defaulting on a student loan are similar to failing a credit card payment. Since all federal loans are guaranteed by the government, which allows the feds to take all measures to recover the loan at wecomparedeals.com.
The borrower is transferred to a collection agency, after a 270-day default on the student loan. A bad credit score not only comes with higher interest rates for future loans, but it is also used as a measure of character by employers and cell phone service providers. You may also be barred from from a service contract that you want, due to low credit score. Borrowers must try to borrow only what they require and sure will be able to pay back.