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If you have taken out educational loans to help pay for your student’s education, it is important to talk with your lender, so that together you can determine the repayment plan that’s correct for your budget. If your plan doesn’t meet your needs, causing you to miss or fall short of payments, your loan will be defaulted.
A default can impact you, costing you more money and leaving you with a bad credit rating for up to seven years after the loan is paid in full. A bad credit rating can affect your opportunities for employment, credit cards, future loans and buying or renting property. Avoid default altogether by selecting the appropriate payment plan. To bring a loan out of default, you can either pay the loan in full, agree to repay it through a loan rehabilitation program, or apply for loan consolidation.
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