I hate to openly talk about things like this, but honestly, there are debts that people can turn their backs on. For instance, I have a XM radio subscription in collections which I never signed up for their services (I guess the dealer ship signed me up automatically or I didn't read the contract carefully). Student Loans on the other hand, would be considered something that we should not take lightly. This article is about defaulted student loans and what you should understand as a borrower.

What can happen if my loan is defaulted?

Have you fallen behind on your student loan? It's probable that your phone is blowing up like crazy. If your hummingbird loans online installment loan direct lender default, the government will launch a full-scale over-the-phone assault. Their guard dogs will hound you down, and these types of phone calls could get pretty intense. When I say guard dogs, I am referring to the collection agencies "servicing" your loans. The agencies do all the dirty work for the big-dog (Dept. of Ed). Since the government gives out student loans like free samples at COSTCO on Sundays, it would be unethical for them to directly collect on these student loans. This is exactly the reason why collection agencies get involved. The collectors will call, and call, and when you think it stopped, they will call again. They will even go as far as contacting your family remember or friends. Legally they are able to contact your "references" as long as they believe that it is a way to contact you.

If you're making pretty good money, it is possible that a lawsuit will be filed. Since you have a valid debt, and you owe the money, you'll be defense less.

If you let this linger long enough you'll be dealing with a bigger problem, wage garnishment. Your employer is legally obligated to take a chunk out of your paycheck, and send this amount as "involuntary" payment.

Remember "Involuntary" payments do not count towards any type of formal program. Of course, the money will be applied to your account, but not allocated in your favor. Keep in mind with a student loan garnishment 80% of your payment will go towards back-interest and 20% will go towards the collection cost (Collection cost could be waived if you play your cards right). The sad thing is, typically, the garnishment amount is much higher than "Voluntary" payment programs.

It's hard when you have to say good-bye to your FULL paychecks but just when you get through grieving and you start to enjoy your life again, another friend named TAX RETURN will depart. The Government doesn't care about the extras in your life, and as long as you are a little bit above poverty level they will continually rape your paychecks and tax returns. They will flip the village upside down until your loan is paid in full.

Often time people are under the assumption that the Federal loan will just fall off of their credit report. But, that is a total misconception, Federal loans have no "statue of limitation". This means that your student loan will be shackled to you as long as you live. The good news is unlike "time-shares" these student loans will not be passed on to your kids when you depart from this world.

There are options for people in default, but the odd thing is no one is talking about them. There are debt relief programs out there that allow people to make reasonable payments based off of their income opposed to making payments based off of the balance. There are programs designed to take your loans out of default with minimal payments. If you do this right you can rehabilitate your loans, stop the garnishment (threats), tax offset, fix your credit, and get the collection fees waived. The information is out there, but the sad thing is the people in our country decided to not do their homework.

My advice to anyone with defaulted loans: Invest your time and money in the right places, and research, research, research! Don't waste your money on lawyers and debt relief companies because historically they can't help, they just want your money. So with that said, DO IT YOUR SELF!

I'm Christopher Kay The "Rogue Student hummingbird loans loan direct lenders with bad credit collector." I'll tell you everything you need to know about Defaulted Federal Student hummingbird loans loans online no direct deposit Stopping student loan garnishment, Stop Tax offset, Fixing your Credit, Lowest payment plans, Different payment plan types and everything you need to know about defaulted Federal Student Loans.

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