Finances can get the best of us. When monthly expenses mount it can be tempting to skip on bills that seem like less of a priority, like skipping a student loan payment... just once. What could one skipped payment hurt? A few months later when things improve and you try to apply for a much-needed auto loan you find you're denied. The reason: the dealership checked your credit report and found that your score was too low.
Missing just one student loan payment can severely impact your credit rating, a score that can shut down many opportunities in life. The penalties for missing a payment can be harsh, but there are ways to avoid a delinquency. The most available method to students is to discuss the issue with the servicer of the loan ahead of time and work toward postponing a payment.
That servicer may also be able to work with students to create an extended payment plan, graduate plan, or consolidated payment plan that ultimately reduces the loan payment. All of these solutions are preferable to skipping a loan payments, no matter how tight money is.
Regardless of the reason for missing a loan payment, the best approach is to give advance notice and work with the loan servicer to find a resolution. This can prevent a negative hit on your credit while managing your student loan.
Find the Right Career Path
Don't let student loans prevent you from getting the job you need. FirstJob works with college graduates to help find them an entry level position. Work with expert career counselors to discover how to change your future by contacting us today. For more advice on moving your career forward check out the tips at the FirstJob blog.