As I was reading about debt, I thought of how many students are taking out loans to pay for their education. In this article, The Top 10 Student Loan Tips for Recent Graduates, there were a lot of useful information that could be helpful for students. In this article, I found a lot of terms that I thought would be important for people to know and especially to those who are borrowing loans. I also read this article called Debts and Deceased Relatives; it was interesting and useful information about relatives’ debts and what happens after they die. What happens once you die and you still owe a lot of money? Does your family have to pay for you?
I have found a lot of terms that I think are important to know. The first one I found to be an important word to know is forbearance. According to the Merriam-Webster dictionary, this word means refraining from something such as obligation, debt, or right. Forbearance allows students to postpone their payment or possibly reduce it. The second word I found is debt collector. A debt collector is a person or company that collects money that’s owed to others and in particular if the debts are past-due according to the Consumer Financial Protection Bureau. According this this article Debts and Deceased Relatives, usually family members aren’t obligated to pay the deceased person’s debts unless their name is on the will. The estate of the deceased person should pay the unpaid debts according to the article. The third term is delinquent. According to Dictionary.com, delinquent means failing to fulfill an obligation or something that’s overdue. According to The Top 10 Student Loan Tips for Recent Graduates, delinquent is when a person fails to pay and it can lead to default. When a person goes into default, their credit score is ruined, government can seize their tax refunds, the amount of money a person owes increases a lot and leads to other problems.
- Forbearance: a refraining from the enforcement of something (such as a debt, right, or obligation) that is due (Merriam-webster.com)
- Debt Collector: A person or company that collects debt owed to others ( Consumer Financial Protection Bureau)