Posted by admin | Posted in finance | Posted on 15-12-2011
Looking for a better understanding on defaulted student loans? Knowing what happens when you begin to miss payments on your student loan is important. This article will provide you with important information that you need to know about the different phases that your loan could be in after you have graduated.
The first phase of your loan will be the grace period on your loan right after you graduate. This phase can last from between six to nine months depending upon the type of loan that you have. During this time it is expected of you to find a job that will enable you make your loan payments once they are due and the grace period expires.
The next phase is the repayment phase. It is during this time where you are expected to make the monthly payments on your loan until the balance is paid in full. During this time should you fall behind on your loan payments you will be considered to be delinquent on your loan. As soon as you miss a payment you are considered to be delinquent.
The default phase begins after you have missed nine consecutive months of payments on your loan. This will have a significant impact upon your credit score and if you have federal loans the government can come after you to garnish your wages. Making some payments each month even if they are not for the full monthly balance can help you to avoid having your loan go into default.
