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Information on the modalities if daughter defaulted on student loan - The Bills.com Blog
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Information on the modalities if daughter defaulted on student loan
Thursday, Jan 10, 2008
Question: I have a wayward daughter that decided to stop going to school. She didn't drop out. She just stopped in her 2nd year. She applied for FASFA and was approved for 2 yrs. We had to give our financial info. Does this make us cosigners? Are we ultimately responsible for these payments? Will they effect our credit? When will they effect our credit-do they wait to see if she pays and then come after us, or are we as responsible right from the 1st payment? Thanks for your help.
Answer: There is a federal loan where a parent can "help" a student with eligibility for school. This loan is called a parent plus loan. If you have a parent plus loan, you (the parent(s)) are responsible for the payback of the loan. This loan will show on your credit report. Therefore, not making payments can negatively affect your credit.A student
loan is in default if the student has not made payments for 270 days. One primary consequence of a defaulted student loan is loss of eligibility for future student loans or any type of state or federal student aid. The default is reported to all national credit bureaus which generally eliminates the option of credit-based alternative loans. Another possible consequence of a default would be wage garnishment.
If you are having trouble meeting your student loan payments, contact your loan servicer. You
If you are having trouble meeting your student loan payments, contact your loan servicer. You
may qualify for a deferment, forbearance, or repayment alternative that is more affordable. Consolidation can help by extending your loan's repayment term beyond the standard ten years. While this will increase the total interest charges, the monthly payments will become more manageable. Bills.com is partners with Freedom Student Loans. If you would like a free consultation, please visit www.freedomstudentloans.com or call toll free at 1-866-902-9641.
I hope the information helps you Find. Learn. Save.
Best,
Bill
www.bills.com
I hope the information helps you Find. Learn. Save.
Best,
Bill
www.bills.com
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1. Posted by Salx on Thursday 17th January 2008 05:33
For a long time I've been looking for loan to enable me pursue my education in U.S for I'm not a US citizen and I completed my secondary Education on October last year. So what can you help me i to reach that point?
2. Posted by Robert on Thursday 17th January 2008 11:28
You can still apply for private student loans but, you will need a co-signor who is a US citizen to guarantee the loan.
3. Posted by Leroy Christian on Sunday 1st November 2009 19:28
I have a student loan in default, but I dont know who has the loan. It has been 15-20 years. I the bank has since closed and i dont know who to contact to pay it back.How can i find out who has the loan????
4. Posted by Bill on Monday 2nd November 2009 09:44
Go to your original loan documents (if you can still find them) and determine if you had a private or federal student loan. If you had a federal loan, go to the National Student Loan Data System (NSLDS) for Students, login, and see if your loan information is in the database. If you had a private student loan, the most comprehensive list of lenders I am aware of is found on FinAid's Private Student Loans page.