If you recently graduated college (or maybe you are getting ready to graduate) you will begin to pay off the student loan you accumulated during your college career. It is imperative you set up payment plans for these loans and not forget about them! If you choose to ignore your monthly invoices, you could go into default, causing a lot of new problems for your financial future. If you default on your loans, you might receive additional scrutiny from your borrows including:
– Garnishment from your weekly, bi-weekly or monthly wage
– Loss of some or all of your tax returns
– Higher interest rates (paying more) for a car, home, furniture, etc
– Additional collection costs
– Low credit score making it more difficult to finance a car, home or other large investment
– Denial of additional financial aid
Ignoring your default only makes it worse! Did you know that Nossi College of Art’s Office of Financial Aid wants to help you when you have questions relating to financial aid? Have you already defaulted and are looking to rehabilitate your loan and restore your credit record? Call our Financial Aid office at (615) 514-2787 and we can advise you of options to bring your loans back into good standing.
It has been common for collectors to tell students what amount they need to pay – even if it is beyond what they can afford. This is absolutely wrong. The law says you only have to pay what is reasonable and affordable. There is no minimum amount your loan holder must charge you. New regulations, effective July 1, 2014, created a new system to help ensure you are paying only what is reasonable and affordable when you graduate. They base payments off your current wages, and as your wage increases, your payment amount will increase until they are paid off. So pay what you can when you first get out of college, and as your experience and career advances, so will your paycheck!
This is a great opportunity for all students to understand. In addition to Mary Kidd, we can put you in touch with a Tennessee Student Assistant Corporation (TSAC) representative as well. Please call 615/514-2787 or email us with any questions or concerns you have! Want to research more on the internet before you call? Start here.