Student loans are in a unique category in the world of credit repair; there is no statute of limitation for their collection. This means that, although you may ignore them today, they are destined to resurface at some point in the future, and bigger than ever. The good news is that there are ways to fix your student loan problems, starting now.
A Little History
Before 1991 the U.S. Department of Education was allowed to collect defaulted student loans for six years. If you could avoid paying for six years you were off the hook. That all changed with a 1991 amendment to the Higher U.S. Department of Education Act which lifted all collection time limits. In addition, the amendment was retroactive. Borrowers that had made it beyond the six years instantly found themselves liable again. It is also worth noting that a 1998 change in federal law made it virtually impossible to discharge student loan debt in a bankruptcy. For all of these reasons it is important to make student loan issues a credit repair priority.
Great Credit Repair Solutions
As firm as the law is, there are two credit repair solutions that student loan lenders are required to offer. These solutions are your legal right and are designed to insure that you can repay your obligation in an affordable way. In addition, these options will stop collection activity, reduce your interest rate, lower your payments, and re-instate your qualification as a borrower in case you decide to go back to school. The first of these credit repair options is consolidation. Once available only for borrowers in good standing, consolidation is now an alternative for borrowers in default. Prior to qualifying you will be required to make three payments on time. The second alternative is rehabilitation. This is a longer procedure, but once completed the default status will be erased from your credit report as if it never happened.
Seek Advice in Advance
If you are in our credit repair program we will give you all of the guidance you need to understand your choices before you call your student loan lender. Student loan resolution represents wonderful a great credit repair opportunity. You should act soon.