Consolidating defaulted private student loan
If you’re in danger of defaulting on your loans, or you’ve already started receiving notices from your loan servicer, don’t ignore the situation. Student loan default means you’ve stopped making payments on your loans.Before your loans can be in default, they must first be delinquent.For private student loans, the time frame for default varies from lender to lender.Generally, you’re considered to be in default after you fall behind by 120 days.The same is true if you file bankruptcy yourself or you default on another unrelated loan.A student loan default on your credit report is extremely damaging to your credit score.If you can’t afford that amount, you can ask your loan holder to calculate a different payment, based on the amount of income you have left each month after paying your expenses.
Discretionary income means the amount of your adjusted gross income that exceeds 150 percent of the poverty guideline level for your state and household size.
For private student loans, the individual lenders determine what actions to take when a borrower defaults.
Generally, however, your loan balance would become full and due immediately.
If you end up in default, any negative marks associated with the cosigned loan show up on their credit report as well.
Any type of loan default can make your financial life harder.