If you somehow failed to meet the deadline because the month’s budget was tight, or you had so much to handle during the month, that you forgot you had a student loan to pay, the consequences are quite severe if you don’t take action quickly. Failing to pay on student loans in time can affect both your current and future payments, depending on whether you are dealing with a private student loan or a government-backed loan. For both, when the due date is missed, your status changes from current to delinquent, and remains that way until you take action.
Steps to Take if You Miss a Student Loan Payment
No matter what the cause of lateness was, the best thing to do is call your loan provider and let them know that you are aware of the consequences. However hard it might be to do this, it will help you redeem yourself. If the cause of your late payment was due to financial hardship, losing your job, or other emergencies, your lender might help you in applying for deferment or loan modification. This postpones the dates by which you are supposed to pay the loan, or reduces the amount of which you are to pay. If one of the above favors you, then your lender will take you through the due process, possibly with some fees included.
How to Avoid a Late Student Loan Payment in the Future
Late student loan payment is a common thing, but this does not mean that you should fail to make the payment. Whether this happened because you just forgot to make the payment, or you had financial hardships, you should set up strategies to help you avoid repeating the mistake in the future. The best thing to do to counter this is by setting up an automatic student loan payment method. Not only will this help you handle the payments in time, but may also show the willingness and dedication to the lenders, hence reducing your monthly interest rates. Automatic loan payments help your credit score get back up quick. However, if this is not an option you would like to take, changing your loan due date to the date you get paid is a good choice. Most lenders give you this option.
As a Business Banking Professional, Kim helps businesses providing commercial loans specifically meant to provide a business with the capital needed to start-up or expand. In her role, she interacts with entrepreneurs and business owners concerning future financial investments in an effort to help the business find the strategies that would work for them.
Vice President • 770-515-7028 • [email protected]