How To Pay Back Your Student Loans

Modern Social Security card.
Six months after you are out of college, it is time to start paying back on your student loans.

Your student loans looked much more desirable when you were receiving the loan monies. You were able to go to college, and probably able to purchase and do things that you wouldn’t have been able to – without the student loans. Many students take out student loans – even if they don’t really need them for college tuition or college expenses. Students take out the student loans, and perhaps live a more fun lifestyle – than they would have – if they didn’t have the student loan monies. The student loans aren’t as desirable when it comes time to start paying them off.

The Great Lakes people will find you. They will hunt you down, when it comes time for you to start paying on your student loans. The longer you take to pay off your student loan debt, the higher the debt becomes. Interest is tacked on to the principle that you borrowed; and then you owe much more money on these loans.

Great Lakes people do allow the borrower – 36 months of deferment – for hardship times. During deferment, you don’t have to pay on your student loan debt. You need to present a hardship reason for not being able to make these payments. Hardship reasons can include unemployment, medical problems, etc. After the 36 months of deferment though, you are to pay on your student loan debt.

The Great Lakes people will hunt you down for their monies that you owe them. They will find out where you work, and where you live. They will call you; and send you mail. If you aren’t making payments on these student loans of yours, Great Lakes will garnish your pay. They will garnish your pay at a higher monthly amount than you would have had to pay – if you were paying on your own. These garnishment payments will be taken out of each of your paychecks, whether you are paid weekly, bi-weekly, monthly.

If garnishments begin happening to you, the best thing that you can do – is contact Great Lakes. You will have their telephone number. You can then agree to start paying by automatic payment withdrawal to Great Lakes – each month, from your bank account. Talk with Great Lakes over the telephone. They will fax you a form for you to fill out. Fill out that form. Then, mail the filled out form back to Great Lakes. They will ask for a first time payment of a specific and reasonable amount. This first time payment amount could be a little higher or lower than when you actually begin the monthly, automatic payment withdrawal. After you make this first time payment, then your payment plan will begin. This payment plan amount is usually a much lower amount than Great Lakes is garnishing you.

If you become disabled and go on Social Security, and receive disability payments, or if you retire, and receive a retirement pension, Great Lakes (also a government program) is allowed and will begin taking out monies from your Social Security check each month. Since May of 2008, Great Lakes has been given the right to do this, and they do. Great Lakes can take monies from your Social Security check each month; but they can’t leave you with a monthly check of lower than $750. They will apply this money to your student loan debt. They do not consider this a payment made by you on your own. Great Lakes considers this type of payment to be a garnishment. Therefore, even though Great Lakes is receiving (say $108 a month), you will still be considered in default of your student loan, harassed by telephone calls, and treated as if you weren’t making payments on a regular basis to them. If you are in default, Great Lakes will take any and all government checks that you have coming, such as your tax refunds, your stimulus checks, and your Social Security pensions. This is legal, and they do this, since May of 2008. The only way to undo this – is to begin make payment arrangements with Great Lakes, as stated above (in the previous paragraph).

If you have already used up your 36-month deferment that Great Lakes allows you for hardship times, then Great Lakes will take the money from you – one way or another – even if you are on Social Security Disability or Social Security Retirement. They must not take your government check any lower than $750 a month, though.

Student loans could become a lifetime debt – if you don’t take care of them wisely. Borrow smartly, and borrow as little as possible. The interest payments are high. Before obtaining any student loans, fill out a FAF (financial aid form). Take advantage of any and all grants and scholarships that you can. If you qualify for these grants and scholarships, the wise thing to do – is to make good use of them – on your education. Remember, grants and scholarships you don’t need to pay back. These are monies given to you – for your education. If you qualify for grants and/or scholarships, use them for your education.

Also, you can research and find out more about education goals and career choices – that can lower the amount of your student loan debt, and perhaps erase your student loan debt altogether.

Be smart. Make the right financial choice. Also, get a good education and a good career.

About the Author:
Debbie Layne Lawson will give you the proper tools to help conquer the mountain called student loans; to further educate yourself on paying off student loans checkout the overlooked tips and tricks of paying of student loans. You can get a unique content version of this article from the Uber Article Directory.
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