4 Ways of Saving Your Credit Report

For a student a higher education degree is very important. For this they are ready to go to any extent and take a huge loan to finance their education if they get the chance to study in the top colleges. But the problems begin when they are unable to pay them off. In today’s world it is not surprising to see an unemployed graduate looking for job. Thus, they are unable to pay off their loans.

The consequences of the defaulted loans are enormous and can ruin the financial future of the borrower. In order to avoid them the steps have to be taken before the repayment period begins. Given below are some of the options you might consider.

Loan Deferment
This will allow you to postpone the repayment period. If you have no job now but are in hopes of getting one within a few months, this is one option you can go for.

Extension
This will increase the lifetime of the loans and therefore decrease the amount of the monthly installments. Even if it increases the total amount of money that you pay, it reduces the immediate burden.

Loan Consolidation
If you are struggling with the multiple payments on your loan, you can consolidate them and make one monthly payment to take care of all the loans and also to reduce the interest rate.
Rehabilitation

If you have federal student loans and if you are working in the public sector then you can apply for and get loan rehabilitation. Under this you will have to maintain a good credit record for about 20 years and then the remaining loan will be forgiven.

The defaulted loan accounts are usually transferred to the collection agencies. This is not only an added harassment but will also increase the amount of money to be paid.