How Student Loan Rehabilitation Can Help Get You Back On Track
Since the economy for the last decade has been changing rapidly, needing more high-tech employees than ever before, the need for more educated graduates has also increased. In order for many people that have lost their jobs to get a new education, many have used the generous student loan programs available. These have helped many thousands of students get re-educated for the new millennia, but they’ve also landed some people in deep debt as well. There are some ways to rehabilitate a student loan, let’s take a look.
Some Students Get Duped By High-Pressure Sales Tactics
Unfortunately, there are a number of dishonest private schools in the US that prey on unemployed people. They get them to enroll in educational programs with little job opportunities but they go deep into student loan debt to pay for them. Then, after they’ve graduated or dropped out, they owe a lot of money and still can find a decent job. Some of these people will go on to find jobs in the future but since they are saddled with high debt they’ll have a hard time making ends meet for some time into the future.
Luckily there are some programs that can help these people and one of them is called the Student Loan Rehabilitation Program. This system was designed to help those that have fallen behind in their loan payments get back on track and become eligible for new loans. It also will rehabilitate the old loan so that garnishments and collections stop as well.
There are certain criteria and one of them is that they have to agree to pay their future payments on time and then do so. For instance, one of the agreements requires the student to make the next 9 monthly loan payments within 20 days of their due date.
They can miss one of their payments during a 10 month period and still be eligible for rehabilitation. For many people, this is just what they need after dropping out of college and not being able to find work. Then they can go back to school and finish their degree in order to get a good job and make their loan payments.
Members of the US military get a special student loan rehabilitation program that allows them to resume their program after they’ve finished their military service. They should investigate the program and follow the rules exactly since there are special circumstances that only apply to military personnel.
If you’ve defaulted on your student loans you should check into the many programs available for consolidation, rehabilitation, or even forgiveness to get yourself back on track. There may be an easy solution for you that might get you heading in the right direction with a good job and less debt.