Students who have taken any kind of financial aid like student loans to complete their higher studies gets 6-9 months of grace period before they can start the repayment. Under any situation, if you default your student loans, then the time by which the loan amount would mature gets increased and hence the payments gets due. If you fail to make the repayment of the money on time, then you have a defaulted student loan. It can pose a threat on your financial condition because there are chances that your wages can get garnished. A student loan is considered under default if you haven’t made any kind of payment in 9 months or 330 days whichever is the minimum. This is something that should not be taken lightly and people should give immediate attention to it and start the payment as quickly as possible.

For those people who have a defaulted student loans and they wish to make the payments, then there are 2 ways to do so. The first is by sending a money order or check to the payment center of the Department of Education, USA. It is imperative that the Social Security number should be mentioned on the payment instrument that you would be sending. The second method includes making the payment by using credit or debit card. Different cards that are accepted for making the payment are Discover, American Express etc. You can call 1-800-621-3115 where you can consult the Default Resolution Group in order to go ahead with the payment process. The address at which you can send the check to pay for your loans is given below:

United States Department of Education
P.O. Box Number 105028
Atlanta, GA 30348-5028

The repayment of the defaulted student loans is applicable for the following financial aid programs that are mentioned below:

• Stafford Loan, including the Consolidation and Plus loan
• Direct Loan offered via William D. Ford Direct Loan program
• Perkins loan offered by the college or university concerned

For those people who are confused and don’t know what sort of student loans are in default, then they can get all the required information by looking through the document papers of the loan that they had taken earlier. If you are unable to pay back the loan that you owe, then it can seriously damage the overall credit score of yours. As a result of which no lender would be willing to offer you any kind of loan in the future because your credit ratings would not be promising. If your student loans are in default, then you need to contact your lender at the earliest and get the information about the various repayment options available.

Defaulted Student Loans pose serious threat to you both financially and mentally. The situation can become very serious and it would be difficult to recuperate. You would not be eligible for the Title IV Student Aid any more nor you can you apply for the loan forgiveness. In the future you would not be able to get a credit card or any kind of loan. If the situation is really a serious one, then the lender can file lawsuit against you and the worse that can happen is that your salary would be garnished. If your salary is a very meager one, then the collection agency can sell your assets and valuables whatever that you possess at that point of time.

In short Defaulted Student Loans should not be taken very lightly and any kind of such notices from the lender or Department of Education should be ignored. If you do so, then you will land yourself in a lot of trouble. So, never default your student loans and pay it off as early as possible.