Education is important for anyone who wants to thrive career-wise in the current generation. Many jobs require truly competent workers, and only academic qualifications and experience can ensure that a person has competence. Students studying in higher education institutions are subject to paying large tuition fees to provide for their education. Those whose parents are unable to raise these large sums of money usually resort to taking out loans from their respective governments to help them pay off their school expenses. However, it is worth noting that students face many challenges when paying off these debts, and misrepresentation by debt collectors is the main problem after loans go into default. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay A loan becomes delinquent when it goes unpaid for a certain period of time, usually between two hundred and seventy and three hundred and sixty days. Student loans have a grace period during which amounts must continue to be paid off. Failure to pay any amount during this period leads to the government declaring the loan in default, meaning the debt will have to be paid immediately rather than over a set period of time as was previously the case. In this state, a collector enters the scene to assist the process. This is what in most cases becomes problematic for those who hold the debts. The government normally has access to agencies that work on debt collection of students who have acquired loans during their years of study. These agencies act as a link between the borrower and the government. They take charge when a student's loans go into default and use all their efforts to ensure that the debts are paid. Sometimes they may use certain tactics that don't go down well with borrowers. This requires borrowers to know their rights and responsibilities to avoid being taken advantage of. Understanding your legal rights when it comes to debt collection makes it easier to deal with these collection agencies. The implications of defaulting on a loan are serious. Once the loan is in default, a collection fee of between eighteen and forty percent of the outstanding balance is levied. In this state, a person's eligibility for federal financial assistance becomes questionable. Their salary, if they work, can be garnished towards the payment of the outstanding loan. An additional disadvantage of a defaulted loan is that these will be reported on the borrower's credit reports for up to seven years. This limits their ability to acquire another loan in the future due to poor credit score. Ineligibility for loan deferral also becomes likely. It is important for borrowers to know their position in such situations, according to the law. Being aware of the laws makes them understand how much they owe the government and how often collectors can contact them. Some agencies harass their clients by threatening them and imposing strict deadlines. This is exactly what causes problems for student loan borrowers. Students have their share of responsibility, as do debt collectors. The fear of being arrested if the debt is not paid, a lie created by many agencies, is what upsets debtors. However, there are several ways to ensure that those who benefit from student loans do not find themselves in situations where they have to default on their loans. Thererehabilitation is essential. This involves making arrangements with the education department, on a payment plan. This is a one time deal. If the affected person cannot use this possibility to erase the default value, it is impossible to carry out rehabilitation a second time. A loan is rehabilitated when the required number of payments are made within the correct time period, otherwise the loan will not be rehabilitated. Consolidating student loans is also a way out of defaultloans. Consolidation involves bringing together different loan balances, including loans in default, and treating them as one. The good thing about consolidation is that the periodic payments become one. Separate payments of the different education loans are required before combining these balances. But with this plan in place, the payments are structured to allow the borrower once per period. This method is effective if the interested party can meet the necessary condition of making three consecutive timely payments before consolidation. Students can also discharge their loans through bankruptcy. This is somewhat difficult but can be done if you follow the correct procedures for the latter. Loan discharge is an action that occurs when you can prove that your income is too low to help you pay off the debts you owe. People who earn sustainable incomes can also apply if their loans exceed a limit that they can bear, with their salary. Student loans were initially not allowed for this action, but with changes in the law this can still happen. If a student can be able to demonstrate that they are experiencing hardship, they are delinquent in paying these loans. Repaying the full amount owed counts as another option. This is quite difficult because most of these loans are usually huge. However, fixing them immediately is a better option because the problem is fixed permanently. This can be done by divesting the property whose equity equals the value of the loans. High-value assets such as vehicles, land and buildings can always come in handy when it comes to fully paying off debts owed. This method seems unattainable but that doesn't mean it can't work. With proper planning and valuation of your assets, this is achievable. The collection status of a defaulted loan is also removed by making payments as quickly as possible, as soon as the situation begins. Making payments that meet desirable criteria under the law causes the borrower to renounce collection status. If the payments meet the requirements it means that the delay of not paying anything within two hundred and seventy days disappears. This method is effective if someone is sharp enough to overcome the challenge of time. Otherwise, the collection status will remain unchanged, taking into account the procedures established by law. Doubters may wonder whether consolidating a loan would make sense since it is simply merging the total loans owed. This creates a lot of meaning because putting these balances together will mean that this is a completely new plan. Periodic remittances will need to be recalculated to determine the amount the student will be required to pay under this new arrangement. In the previous plan, before consolidation, you will be required to pay each loan repayment separately with its own terms. With pooled balances, it is like dealing with just one as the terms will not vary because the deal is made as a whole. Paying off loans in full can be questionable even for.