No one wants to default on a borrowed loan, be it home loan, business loan, mortgage loan or student loan. The consequence of defaulted student loans is more bitter than that of other defaulted loans. Students who take loans from the market for higher technical or management education at a renowned institute have a long way ahead to go after they complete studies and qualify. But, the defaulted student loan makes roadblock on their path to a bright and beautiful future life. However, there are ways to get out of the defaulted status.
When you have not made a single monthly payment in a period of 270 days, you default on the student loan. Consequently, the lender will put your loan in the list of defaulted student loans and your name in the list of defaulters. And, your case will be transferred to a collection agency who can go to any extent to collect the loan. There will be no end to harassment, if they call you at irregular hours, haunt you to the workplace and follow you to a social gathering. So, you had better overcome the defaulted status.
Getting rid of defaulted student loans is no Herculean task, if you are a little more conscious. A defaulted loan case is not reported to a collection agency or the credit bureau before 90 days following the period of 270 days when the borrower has not made a payment. If you make a payment within these 90 days, the clouds of your defaulted status will disappear from over your head. You can also go consolidating your student loan during this period. The consolidation option may not be available, in case the 90-day period is over and you do not pay even the smallest chuck of the loan.
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