When you`ve fallen behind on your student loan payments, it can feel like there`s no way out. If you have federal student loans serviced by Great Lakes, however, there may be an option available to you in the form of a reaffirmation agreement.
A reaffirmation agreement is a legally binding document that re-establishes your obligation to pay back your debts. In the case of student loans, it essentially acknowledges that the debt is still valid and that you agree to continue making payments. This agreement can be particularly useful if you`re in danger of having your loans defaulted, as it can help you avoid the serious consequences of default, such as wage garnishment and damage to your credit score.
To use a reaffirmation agreement with Great Lakes, you`ll need to reach out to them and request the agreement. They`ll then send you a copy of the agreement along with instructions for completing and returning it. You`ll want to review the agreement carefully, as it will outline the terms of your repayment plan and any consequences for failing to make payments.
It`s important to note that entering into a reaffirmation agreement is a serious commitment, as it means you`ll be legally obligated to continue making payments on your student loans. If you`re struggling to make your current payments, it may be worth exploring other options, such as income-driven repayment plans or loan consolidation. Additionally, if you`re already in default, it may be too late to use a reaffirmation agreement as a solution.
If you do decide to pursue a reaffirmation agreement with Great Lakes, be sure to communicate with them regularly and stay on top of your payments. With dedication and a solid plan, you can turn your student loan debt around and get back on the path to financial stability.