Student Loans & Your Credit

What can we say about student loans? For many people, student loans have been the bootstrap that they needed to attend college, get a higher paying career, and change their life’s circumstances. Students simply would not be in the position that they are today without readily available student loans. Lenders offer them to people based on financial need and not really on the ability to make payments on those loans. For other people, student loans can become an albatross around the neck. Maybe the person did not finish their higher education. Or maybe they did not find employment after graduating, or found employment but not at a high enough salary to make payments on those loans. The student loans that once seemed like a lifesaver can quickly turn into rocks that are weighing you down, threatening to drown you in an ocean of debt.

Unlike other forms of debt, you cannot file bankruptcy to get rid of them and try for a fresh start; instead, they follow you everywhere, impacting your buying power for years and years. Federal student loans are considered in default after 270 days of non-payment. Even though deferral options exist, interest continues to accrue during that time period. Defaulting on student loans can result in an impact on your credit report, garnished wages and tax returns. Defaulting can also dramatically impacted credit score.

Student Loan Credit Repair Services

Fortunately, Emerald Credit Solutions can help you with student loan credit repair services. Defaulting on school loans does not have to permanently impact your credit. First, one of our credit advisors looks at your financial history. Then we help you determine the right approach to take to get your credit back on track. We can do this even if you have already been in default.

Generally, there are three different approaches to take to get yourself out of default status: deferment, forbearance, and repayment. We structure our repayment plans based on income, which makes a huge monthly difference in what we require you to pay. There are also forgiveness programs, which we base on working in certain fields or geographical areas. But those are longer-term solutions that do not begin to immediately impact your score. Determining which approach is right for you depends on several factors. These include the number of loans, the type of degree (if any) received, your income, and other individual factors.

Our Approach

Emerald Credit Solutions can help you remove defaulted loans from your credit report. This is not the same as a charge-off that might occur in other lending scenarios. While you may settle student loan debt for a lower amount, unlike other types of debt, neither time nor bankruptcy discharge student loans. Therefore, even if it is not on your credit report, it can continue to impact you. This is especially true when it comes to your ability to get tax refunds or other federal payments.

Want to find out more about how Emerald Credit Solutions can help you? Contact us today. First we will provide a free overview of your financial situation. Then we will suggest a plan that can get you back on the road to financial stability.

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