Who should you contact if you have trouble making payments once you leave school?

Who should you contact if you have trouble making payments once you leave school?

a. Your loan servicer when it’s time to enroll in a repayment plan.

b. Your loan servicer if you have questions about repayment plans.

c. Your school’s financial aid office if you’ve already accepted or received more loan money than you need

d. Your loan servicer if you have trouble making payments once you leave school.

Answer: d. Your loan servicer if you have trouble making payments once you leave school.

The lending institutions that offer student loans will be your point of contact when you have challenges paying back your loans after you are through with school. Loan servicer refers to companies that the Department of Education provides with the mandate to carry out billing issues and other services regarding federal student loans. They are involved in the management of your loan repayment schedule and can provide various measures to deal with the loans.

For instance, if you have graduated in the previous one or two years and realized that you cannot secure a job that will enable you to repay your loan as per the standard, the loan servicer will be in a position to assist you get the income contingent payment plan. These plans work with your income amount and household size to change your monthly instalment potentially lowering payments. Likewise, if at the moment you are experiencing troubles in earning money are jobless, or have a severe health issue, the servicer will direct on to the procedure of applying for deferment or forbearance which temporarily puts a stop or minimizes your payment.

Your loan servicer can also discuss the loan consolidation if you have more than one federal education loan, which groups all of them into a single loan. They can give details on the available loan forgiveness details that you may qualify for such as the Public Service Loan Forgiveness for individuals working for organizations in the public service.

One must consult his or her servicer when there is a likelihood or reality of making the Payments with difficulty. Preventive measures which consist of effective communication to avoid delinquency or default are an essential aspect when it comes to one’s credit score and or financial future. Keep in mind that loan servicers make it a point to help you in the effective repayment of your student loan so do not hesitate to ask for their help.