Sometimes in life you come across something that seems like it just simply can't be true. This seems like one of those things, but in this case it is absolutely and unbelievably true.
In almost all other parts of the financial world, someone who is even slightly behind on their bills is considered to be a bad credit risk and lenders shun them. Nobody seems to want to lend you money when you need it the most. That is till this program came along.
But much of what you would assume when it comes to dealing with student loan debt is in reality the opposite of what you would expect.
Take being more than 270 days past due on your federal student loans. It's not till you get nine months behind on your student loans that you are even considered to be in default. Up till that time you've just been mildly delinquent.
The government doesn't like student loan holders to be in default. But what they like even less is for people to put their head in the sand and ignore the situation so horribly that it winds up requiring the government to engage an Administrative Wage Garnishment. But hell, even those are easy to stop if you know what to do. In fact if you want to know that secret, click here.
So to wrench defaulted people back from the clutches of being behind on their student loans, the government wants to lend you low interest rate money to not only bring your loans instantly current, but to also lower your payment at the same time.
By now you must be saying to yourself, why don't more people take the government up on this great offer? Well that answer isn't so complicated. You see most of the government student loan servicing gets farmed out to outside companies. And those folks either really suck at their jobs, don't care, or have other reasons for not sharing the easy answers.
If I was a conspiracy nut I might even think the collectors make more from keeping someone in collections than helping them to get out of default and current again.
And as if this all sounds too good to be true, let me share with you another unbelievable fact, the government offers this program for free and charges no fee to allow you to borrow your way out of student loan default.
All the details on this program can be found right here.
Frankly, if someone you know is facing a default on their federal student loans, and they don't learn more about this program, they are just plain silly.
This government program will make an Administrative Wage Garnishment unnecessary, prevent tax refund intercepts, prevent people from being sued, and lower the monthly payment based on what the student loan holder can afford.
For once, something that sounds too good to be true, really is.
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