Ways to Prevent Loan Default

Top Ten Ways to Prevent Defaulting on a Student Loan

1. Understand your rights and responsibilities regarding your re.payment obligation as well as your repayment options.

2. Borrow for college expenses only. Borrow only the amount you need and only what you can reasonably expect to be able to repay.

3.Keep all records regarding your loan. Make copies of all letters, canceled checks, and any forms you sign.

4.Notify your lender or servicer when you have a change of address, phone number, or name, or if you change schools or your enrollment status.

5.Seek help as early as possible if you have any difficulty maintaining your student loan repayment arrangement.

6.If you have any questions, talk to your lender or student loan guarantor about the particular terms of your loan.

7.Keep credit card debt to a minimum or avoid credit card debt completely.

8.Create and maintain a budget that is within your monthly income.

9.Consider making nominal student loan payments while in school. This will reduce the amount you owe after graduation.

10.Make loan payments on time.