Alycat Solutions
Credit Restoration Made Easy
STUDENT LOAN DEBT
As of December 2019, about 43 million Americans held federal student loans, and the education financing system is under growing pressure as more borrowers struggle to repay, a problem compounded by the complexity of the repayment process. The U.S. Department of Education reports that about 20 percent of borrowers are in default—typically defined as having gone at least 270 days without a payment—and more than a million loans go into default each year.2 And although recent research indicates that many borrowers eventually are able to get their loans current, some default again, even multiple times: twenty-five percent of people who restored their loans to good standing defaulted again within five years.
Student Loan Servicers
Servicers are required to report loans that are in default or more than 90 days delinquent to the major national credit bureaus. These notations remain on borrowers’ credit reports for up to seven years.
Research suggests that, on average, student loan borrowers’ credit scores—many of which may already be low—decline by 50 to 90 points in the period leading up to a student loan default, potentially a result of delinquent payments and possibly indicating that borrowers who default on student loans are falling behind on other bills as well. And although these individuals’ credit scores can recover somewhat shortly after they enter default, borrowers with poor credit will pay more for or have difficulty obtaining credit cards, home or car loans, and other consumer credit and insurance products for several years.
Alycat Solutions has partnered with a team of experts that can direct you to the best possible solution to help you get a handle on your student loan debt and even sometimes help you completely get all or some of your student loans forgiven. A free consultation of 30 min or less will help our team decide which program is best for you. Schedule your free consultation with our team and get the information you need!