Federal student loans and the degree to which the federal government subsidizes these loans has been the subject of tremendous debate in recent months. This particular piece of legislation applies to loans issued on or after July 1, 2013. This new law also includes a measure that implements variable interest rates on undergraduate and graduate Stafford Loans, with an interest rate cap set at 8.25 percent for undergrads and 9.5 percent for graduate students.

1. All You Need to Know about Student Loan Rehabilitation
Defaulting on a Student Loan Relief, Inc can have serious financial consequences. Your
credit report is negatively affected, the government can garnish your wages and
you can lose your IRS income tax refunds. If you are having financial difficulties in
making your monthly loan payments, then making the decision to default on the
loan is the worst decision you can make.
The fact that you are in a financial abyss and unable to meet your monthly loan
payments does not mean that you do not have any other options. This is true if
you have a private student loan or a federal loan.
If you have a Direct federal loan or a Federal Family Education Program (FFEL)
then the federal government is willing to work with you in deciding upon a more
convenient payment terms.
If you have a Private Student Loan Relief, you may find it a bit more difficult in
arranging for more convenient terms with your private lender. However, this does
not mean that convenient payment terms are impossible. All you need to do is to
discuss your financial situation with your lender and request for easier payment
options. If they refuse to work with you, you can submit a complaint with the
Consumer Financial Protection Bureau and request that they help you in
negotiating an easier payment scheme.

2. During these tough economic times, a rise in the number of students who default
in their student loan payments have been reported. The increase has caused
many concerns with the government as this situation can be a cause of more
economic difficulties.
This is one of the reasons why the federal government is willing to negotiate
easier payment terms so that the loan does not fall into default or if it is already
in default, it can return to repayment status.
If you have a federal student loan that is in default, you will need to contact the
Department of Education (DE) to negotiate easier payment terms. The DE will
take a look at your financial capabilities and work with you on a rehabilitation
program.

3. Once you have agreed to a monthly payment amount, you will need to make 9
consecutive payments without being delayed. Should you delay on a single
payment, you will need to restart the program.
One thing to remember is that if the Student Loan Rehabilitation has already
started wage garnishment, the amount collected by the government from this is
not counted towards your payment under the rehabilitation program.
However, after you complete the rehabilitation program, wage garnishing or
other methods used by the government to collect on your loans, will be stopped.
Your loan will be returned to the repayment status and your credit report will no
longer reflect a default loan status.
It is extremely important that you do everything you can to get into a
rehabilitation program should your loan be in a default status. Once your credit
report is affected, you will have more difficulties in applying for other loans as
many lenders may refuse to provide you with credit terms. To know more about
Student Loan Relief please visit here:- http://www.studentloanrelief.us