Consolidating student loans after default
Falling into default on your Federal Student Loans can be a serious issue for a multitude of reasons.Firstly, it will negatively impact your credit which will making trying to borrow money very difficult in your future.It essentially means that the borrower is late on a payment, but has not fallen into default on their loans yet.
A delinquency on your student loans happens as soon as you miss one payment, or are even late on a payment by one day.
Sometimes when the weight of student loan debt becomes overwhelming, it’s almost easier to pretend it doesn’t exist.
And while that can certainly feel better momentarily, pretending for too long could lead to student loan default.
Of course, life didn’t go as smoothly as I had envisioned as an 18-year-old. Fortunately, I had a six-month grace period before I had to start repaying my loans after graduating and I was confident something would turn up.
This became glaringly apparent 10 years later, when I received an email from the HR department at my company: We are commanded to immediately remit 15% of your disposable pay to the U. But six months later, the only career-related job I’d found was an unpaid internship at a small literary agency.