If you are unable to pay your student loan while in college, a student loan counselor can help you sign up for an in-school deferment. The in-school deferment will suspend all payments you are required to pay while enrolled in school. In order to qualify for an in-school deferment, you must be enrolled in school at the time of the in-school deferment request. The interest on the student loans does not stop accruing, depending on the type of loan.
Student loan counseling services are also available if you do not have the funds to pay back a loan upon exiting school. In such cases, a student loan counselor can assist you with submitting a forbearance. The forbearance temporarily suspends your payments for a period of time, allowing the you to pay the student loans back at a later date, once you become financially stable and able.
Student loan counselors work daily to send out emails and other written correspondences, as well as make telephone calls to students or previous students whose loans are in the process of default. Once your loan goes into default status, the non-payment of the loan will go on your permanent credit report, as well as preventing you from getting another student loan. Should you default, the student loan counselor will help you establish payment arrangements to bring the loan out of default.
If a loan is in default, or you want to lock in an interest rate, the student loan counseling service will help you to consolidate a student loan. By consolidating loans, the repayment schedule will be one payment, verses multiple payments for each loan. If you have a lot of debt, or more than one lender, this is a viable option.
When you want to locate the lender or servicer of your student loan, a student loan counseling service can help with the contact information. The counseling service will also be able to explain the different options the lender will have available and the status of the loan.