Student Loan Rehabilitation

consolidation-student-loansQuality education is becoming more and more expensive. The tuition fees and living expenses of higher education students are such that most students cannot afford these costs on their own or even with the help of their family’s financial resources. In such situations, a large number of students resort to financial aid options and student loans to enable them to pursue their educational goals. While aid options such as grants and scholarships are essentially gifts of money and don’t need to be paid back, loans money must be returned with interest after graduation. Although most students are able to pay off the loans they have obtained for their education with ease (as such loans are usually designed to accommodate students), there are sometimes cases of default.

Students who have defaulted on their student loan can use student loan rehabilitation to rehabilitate student loans and reverse the negative consequences of defaulting. Student loan rehabilitation is a federally authorized program that provides federal student loan debtors a means to bring their loans out of default. Under this program, borrowers must make 9 timely student loan repayments. Once this is completed, the guarantor transfers the loan to a lender and servicer. From this point on, the loan is considered out of default and back in repayment. In fact, after completing student loan rehabilitation, students become eligible for financial aid once again.

To avoid situations that may lead to default, students who opt for private student loans must ensure that they choose loans that are best suited to their individual financial situation. They should resort to private loans only after all other aid options have been exhausted. This is due to the fact that private student loans have tougher repayment options and higher interest rates than federal student loans.

If you are planning to apply for a private student loan, make sure you conduct a thorough search to find the best loan option for yourself. You should consider all available options and compare the terms of various private loans to see if they suit you. Our Student Loan Comparison Tool helps you do this. Use it and make sure you choose the right option. It’s fast, accessible, easy-to-use and absolutely free!

 

Student Loan Repayment and Financial Problems