Student Loans and Payday Loans – What Recent College Graduates Need to Know

Student loans can help you get your college degree, but they can also become a huge burden after graduation. If you struggle to get a job that pays well, you may have a hard time making repayments on that loan. Recent graduates with student loan debt need to know some important facts about what will happen next, and what payday loans have to offer in tough times.

Missing A Payment on Your Student Loans is Serious

Missing a payment on a student loan, even just being a little late, means you will be considered delinquent. That delinquency could be reflected in your credit score, lowering the number. It can also cost you more money in the form of a late fee. If you miss several months of payment you will be in default, which is much more serious. In default you may be required to make the loan repayment in full, you will be ineligible for a deferment, you may not be able to get federal student aid in the future, you’ll face a lot of extra fees, and your wages can be garnished.

Your Student Loans Could Cause You to Lose Your Tax Refund

If you have a tax refund on the way and were hoping to spend it on something fun or just some other expense, think again. Failing to pay your student loan on time can mean that your refund gets seized and applied to the balance due. This is a tax offset and it will wipe out any other plans you had for that refund money. Another tax consequence of student loans is that any forgiven or canceled portion of that debt is taxable. It is considered a type of income.

How to Avoid Missed Student Loan Payments

Student loan repayment is serious business. You should do everything you can to avoid missing payments but especially to avoid going into default. The latter is a big hole to try to climb out of. Some steps you can take to make sure you pay on time include using automatic payments so you don’t simply forget. You can also set yourself reminders. When you have extra cash for some reason, use it to pay down more of your debt. And, if you can, talk to your lender to negotiate better terms that will make it easier for you to meet each monthly payment.

If Necessary, Use Payday Loans

If you’re at risk of being unable to make a payment on your student loan, in spite of taking steps to avoid this situation, consider using payday loans. These are small, fast, short-term loans that provide just as much cash you need. If you are working, you should be able to get approved easily, even if you have bad credit. With cash in as little as 24 hours with a payday loan, you should be able to cover your student loan payments on time and avoid delinquency and default.

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Student Loans and Payday Loans – What Recent College Graduates Need to Know