What should you do if you CAN'T PAY?!
Know you are not alone.
The student loan people are accustomed to talking with college grads that have practically no money and can't pay their loan right away. So, JUST CALL THEM and explain. They'll work with you.
Loan Counselors are available to help you.
- For AES-serviced loans: Call 1-800-328-0355.
Monday through Thursday - 8:00 AM to 9:00 PM (ET)
Friday - 8:00 AM to 7:00 PM (ET)
Saturday - 8:00 AM to Noon (ET)
- For FedLoan Servicing loans:
Contact FedLoan Servicing at www.myfedloan.org/about/contact.shtml.
- For loans with other servicers: Please contact your servicer for specifics on their default prevention assistance. (The name of your loan servicer is on your bill.)
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But don't avoid it. Because if you do, you could default and that's not pretty...
| Consequences of Defaulting on Student Loans: |
- No more financial aid.
- The entire student loan is due in full.
- Collection costs up to 19.5 % could be added to your student loan.
- The defaulted loan will appear on your credit report for up to seven years (try leasing a car with that!).
- Your employer could be served a legal garnishment notice requiring them to forward 15% of your pay towards repayment of your loan.
- Your income tax refunds could be withheld and applied toward your loan repayment.
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Just because money is tight and you can't pay doesn't mean there aren't options.
Next: Repayment Options
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