Student loans are very helpful, especially to the needy who are not in a position to pay their college fees. It has seen many through their college studies. Many consider it to be good debt because you are investing in your education, which is vital in shaping your future. You will be required to repay your student loan depending on your agreement with the creditors.
Some of the options you have include paying after securing employment, completing your studies or while still in school. Others will require you to pay immediately after you have finished school. You also have the option of seeking loan forgiveness. There are different loan repayment programs you can subscribe to that will see you out.
You may choose to work with disciplined forces or public services. Subscribing for an income-repayment plan meant for loan forgiveness is also possible. Failing to pay back your student loan on the stated period, or at all, will affect your credit score. Accessing other loans will also be difficult with a poor credit score. This also applies to businesses.
Visit www.boostcredit101.com to learn how you can boost your credit score with tradeline. Failing to pay your student loan will result in wage garnishment. This happens when an order by the court is issued – informing your employer to hold back a certain amount of your wages and pay it to individuals or an institution you owe money to. This happens until you clear off all your debt. You can stop this from happening by doing the following:
Repaying Your Loan on Time
Making timely payments will help reduce the chances of wage garnishment. You will have a good record with the credit bureau and other relevant bodies that will keep you free from such happenings. Always pay before the due date or be consistent when doing the same to maintain that excellent record.
Full-Debt Payments
Paying your student loan debt in full will help stop wage garnishment. Many people are used to making partial payments, which is one of the easiest ways of completing their outstanding loans. Full-debt payment is one of the easiest ways of stopping wage garnishment – as much as it may sound difficult for many. You can seek help from friends or relatives who will help you clear the whole amount and avoid wage garnishment.
Loan Consolidation
Consolidating your student loan is another good way of stopping wage garnishment. It involves combining different student loans into one from a single lender, which is later used to pay balances in others. Doing so will push your repayment period forward and reduce the number of payments you have to make.
Income Repayment
You can also sign up for a repayment plan to stop the garnishment of your wages as a result of your student loans. Paying your student loan back will be a lot easier if you sign up for this. A certain percentage will be deducted from your income to service your outstanding loan.