Student Loan Debt
After you graduate you have anywhere from six to nine months before you begin repayment of your student loan debt. You will be notified by your loan provider when you will need to start repayment. If you do not pay back your loan within a certain period of time your loan defaults.
- Defaulting on your loan: A default occurs on a FFEL loan after a default has persisted for 270 days in the case of a loan repayable in monthly installments
- Collection: It's definitely in your best interests NOT to let your loan default as your loan then becomes assigned to the U.S. Department of Education to collect. Your wages can be garnished at a rate of 15% in order to pay back the loan.
- Consolidation: Once again debt consolidation for loans is the key to extending your repayment period or starting a program that starts out with low interest rates and grows as your income (theoretically) grows as you advance in your job.