Resources and insights to help you understand your debt - one peach at a time.
Student loan default occurs when a borrower fails to make their monthly loan payments as specified in their loan agreement. Federal student loans typically enter default when a borrower misses payments for 270 days (approximately nine months), while private loans may have different terms. Defaulting on your student loans can have severe repercussions that affect your financial stability, credit score, and future opportunities.
Credit is a financial tool that plays a significant role in many aspects of our lives. Whether you're looking to buy a home, get a car loan, or even secure a credit card with attractive rewards, a strong credit history is essential. However, building credit is not a quick process; it takes time, responsible financial behavior, and patience. Before delving into the timeline, it's crucial to understand how credit building works. Credit scores, which are used by lenders to assess your creditworthiness, are calculated based on various factors, including your payment history, credit utilization, length of credit history, types of credit accounts, and new credit inquiries.
Navigating the world of student loans can be daunting, especially if you're juggling multiple loans with different interest rates and repayment terms. Two common strategies for simplifying your student debt are loan consolidation and loan refinancing. While these terms are often used interchangeably, they refer to distinct processes, each with its own set of benefits and considerations. In this article, we will explore the differences between student loan consolidation and student loan refinancing and help you determine which option might be right for you.
One of the most significant financial decisions a student or their parents will make when pursuing higher education is how to fund it. While grants and scholarships can help cover some costs, the majority of students turn to loans to bridge the gap. When it comes to student loans, two primary options are available: federal and private. Each type of loan has its own set of advantages and disadvantages, and understanding the differences between them is crucial for making informed financial choices.
Life is full of uncertainties, and sometimes financial hardships can become overwhelming. When bills pile up, debts become unmanageable, and financial stress begins to take a toll on your overall well-being, it might be time to consider your options. One such option is bankruptcy. While it's often viewed as a last resort, it can provide a fresh start for individuals drowning in debt.
For many individuals pursuing higher education, student loans play a pivotal role in financing their academic journey. However, life's twists and turns can sometimes lead to financial challenges that make it difficult to meet your student loan obligations. If you find yourself on the brink of missing a student loan payment, it's important to take proactive steps to address the situation.