Defaulted Student Loans Cost You Big Bucks

Did you know upon signing your initial promissory note you are taking responsibility to repay your student loans back. In addition you are also agreeing to pay any collection costs on your debt should your loan be defaulted. These collections costs can be as much as 24% and may be added on to the balance of your loan. Collection costs are recalculated annually and the percentage rate is subject to change depending on variations with administrative costs, or whether your account is assigned to a collections agency or an attorney. Recalculated costs can potentially cause either an increase or a decrease in your total balance.

Collection costs are calculated as a percentage of the total principal and accrued interest balance. Once a repayment arrangement is in place and the first payment is made within the first 60 days of the default claim date, you will not be accountable for collection costs once the account remains current.

If your student loans are in default we can help. Visit us online at www.teamfmi.com  and take action.  Also on the lower right hand side of this blog you will see a Contact Tab click on that tab and ask me a question or schedule a 30 minute free no obligation consultation.

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Financial Management Institute Inc
Kenneth Grayer CEO/President
Email: clientservices@teamfmi.com