When life circumstances change, it can be hard to keep up with reoccurring student loan bills – especially when you’re focused on making ends meet. Unfortunately, consequences snowball when you pay late or not at all.
Your loan is considered delinquent the day after an overdue payment until the time you catch up. If you satisfy your payment a day or two late, you’ll avoid further trouble – but the situation escalates if you never pay at all.
A late student loan payment affects more than just your relationship with the loan servicer – it can seriously damage your credit. After your loan is delinquent for 90 days, student loan servicers report it to the three major credit bureaus (or “consumer reporting agencies”).
Poor credit can make it difficult to be approved for things like:
And even if you are approved for new lines of credit, it’s unlikely you’ll get a decent interest rate.
Did you know you’re not stuck with your current loan repayment plan? You have options. Many plans offered by your federal or private loan servicer will allow you to catch up on payments with a lower rate, and even get ahead.
Whether you want to pay less in more installments or pay more to accelerate paying off your debt, our team can help you vet the possibilities. We’ll go over the positives and negatives of each so you can feel confident in your decision.