Solve credit issues with student loans

First things you have loans from multiple organizations, the best thing to do is apply for a Student Loan Consolidation. There are several companies that may offer a consolidation loans at reasonable rates.

They also have a variety of repayment programs available: fixed, gradual and income contingent. Should you qualify for income contingent, your payment is adjusted to your current income and family size.

A fixed repayment schedule is the same payment for the course of your loan and gradual starts you off with smaller payments now, but will increase each month. Sometimes gradual repayment plan will end up with higher monthly payments than the fixed plan does.

Secondly, whether you have consolidated your student loans or not, many loan companies offer hardship programs.

There are two options: economic hardship and deferment. Both offer approximately six months to a year of not having to make payments, but qualification requirements are different.

Most deferments are because you have returned to school or are active military. A majority of everything else falls under economic hardship. Though you temporarily stop making payments interest is still accrued monthly on the unpaid portion of your loans. In some cases deferments do not charge interest during the time-frame of your deferment.

Check with your loan holder for specifics.

Economic hardships and deferments can be applied for whether your loans are consolidated or not. Just remember if your loans are not consolidated you must apply with each loan holder. Contact your loan holder for details and to obtain necessary forms to apply.

Thirdly, should you have defaulted on a student loan, do not give up hope. There is still some op%tions, even if your wages are being garnished. One option, if the defaulted loan is not consolidated with all of your other loans, you need to apply for a loan consolidation.

This is also helpful because in the long run you are only making one payment a month instead of several to different loan holders.

Once approved for the loan consolidation you will ned to follow up on everything until the garnishment has stopped.

Contact your original loan holder to make sure they have received payment from the loan consolidation company. Make sure it is for the entire amount of the original loan. If they have, remind them that you are being garnished and would like to request the garnishment to stop.

You will need to request them to stop, some loan holders do not automatically stop garnishment and others sometimes overlook the fact you are being garnish. Either way, it is always a idea to follow up. Also, you may want to contact your payroll department regarding your garnishment.

If they are aware that there will be paperwork coming through to stop your garnishment, they may keep an eye open for it. This way if wont end up at the bottom of someone's to do pile.

If you have already consolidated your loans or were denied for consolidation, your best bet is to contact your loan holder for options to stop garnishment.

Some companies will request a full month's payment upfront before they stop garnishing your wages. Others may work with you, especially since trying to come up with a $100 payment, for example, while they are garnishing your wages by 15%, could be financially difficult, if not impossible.

No matter what your circumstances, do not be afraid to ask questions and talk through different options with your loan holder. The worse thing that could happen is they say no. But if you never ask, you never know.

Please note to be patient throughout the process. From the time of applying for a consolidation through ending your garnishment it could take two to three months minimum.