How Student Loan Debt Affects Your Credit
More than 44 million people across the United States have accumulated some form of student loan debt. Many people that are struggling to pay off this debt are facing looming concerns over the next 10 years or even several decades. It’s likely that the process of paying off student loans could have accumulated quickly especially when you are moving into a new career path. You could be facing several hundred dollars a month when you are starting a job in your career. On a $30,000 student loan you could be paying as much as $8-$9000 in interest.
Student loans can be excellent for your credit and as you continue to make on-time payments for your debt you can qualify for a better credit score and new types of credit products. When your student loans continue to accumulate it’s possible that you could quickly harm your credit. Even a single missed payment can begin to lower your score, and when you start to miss payments by 60 or even 90 days your score can drop very quickly. When your student loan accumulates payments up to 270 days late it’s likely that you will be labeled as a default on your student loan. As soon as your loan goes default your credit will take a huge hit for several years. There are some methods that can be used to help you with your debts including the process of student loan modification and the elimination of various parts of the loan, rehabilitation of various aspects of the loan or consolidation of your debts. A student loan can certainly affect your credit in a negative format but by working with your lender and contacting a bankruptcy attorney you can make sure that the process of repaying your student loans and managing the debt can be done more easily.
Contact us today if you have been struggling with student loan repayment, we can make sure that the process can be managed accordingly for you!
This post was written by Trey Wright, one of the best Bankruptcy Lawyers in Tallahassee Florida. Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, which specializes in areas related to bankruptcy law, estate planning, and business litigation.
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