Let's pave the way to financial recovery together!

Defaulting on your student loans occurs when you fail to make payments for an extended period, typically around 270 days for federal loans. Once your loans enter default status, it can have severe consequences on your financial health.

1. Credit Score Impact: Defaulting on your student loans can have a significant negative impact on your credit score. A lower credit score can make it challenging to qualify for credit cards, loans, and even housing in the future.
2. Future Credit Access: Defaulting on your student loans can also affect your ability to access credit in the future. Lenders may view you as a higher risk borrower, making it harder to secure loans for cars, homes, or other necessities.
3. Seizure of Personal Property: In extreme cases, defaulting on federal student loans can lead to the seizure of personal assets. The government has the authority to garnish wages, seize tax refunds, and even take legal action to collect on defaulted loans.
4. Tax Refund Garnishment: When your federal student loans are in default, the government may intercept your tax refunds to repay the outstanding debt. This can further impact your financial situation, especially if you were relying on the refund for other expenses.

However, there is hope for borrowers facing default. Aved Consulting Firm specializes in helping individuals in this situation by providing solutions to get their loans back on track.

1. Repayment Plans: We can help you enroll in repayment plans tailored to your financial situation. Some plans may offer reduced monthly payments, making it more manageable to stay current on your loans.
2. Loan Consolidation: Consolidating your defaulted loans into a Direct Consolidation Loan can simplify your payments and potentially lower your monthly payments. It's important to consider the pros and cons of consolidation before proceeding.
3. Rehabilitation Programs: Participation in a rehabilitation program can also help you get your loans out of default. By making a series of affordable monthly payments, you can demonstrate your commitment to repaying your loans and regain good standing with the Department of Education.

Our team at Aved Consulting Firm is dedicated to helping you navigate the process of recovering from defaulted student loans. We'll work with you to explore your options and find the best solution for your financial situation. Don't let default derail your financial future – let us help you get back on track.