When you decided to further your education and took out a loan to fund your goals, you likely did not think it would go into default. Unfortunately, this is a reality for many individuals who choose to pursue higher education. If your student loan debt is too great for you to tackle, you should consider settling it with your lender. However, before you proceed, you must hire an attorney to help you through this complicated process.
Understanding Student Loan Debt Settlement
If your lender is willing to accept less than what you owe, you can settle the debt by making a lump sum payment. Lenders are generally unwilling to settle student loan debts unless it is in default. After all, if you continue making payments, they have no reason to accept less than the amount you owe. For private student loans, when you go into default will depend on the specific lender. In most cases, after three months of missed payments, your student loan will likely be considered in default.
How Does it Work?
Although the details of your student loan debt settlement will vary depending on a number of factors, such as the amount you owe and the number of lenders you have, there are some steps you can generally expect.
Below is a brief overview of student loan debt settlement, which your attorney will help you navigate:
- Your attorney will present a settlement offer to each of your lenders. Typically, a lender will not consider the offer unless it is at least half of what you owe. They will also expect a lump-sum payment. However, an experienced attorney can negotiate a payment plan.
- After negotiating the offer on your behalf, you will have an agreement in writing.
- You will pay your lender a lump-sum of the amount you agreed upon. Your remaining balance will be discharged.
- The discharged portion of your student loan will be reported to the credit bureaus. The negative item will stay on your credit report for seven years, beginning on the date it was discharged.
Although this might seem straightforward enough, the process can be complex and present some obstacles, so you will need an attorney to inform you of the potential risks you might face and your rights.
Contact Our Experienced Debt Relief Team for a Consultation Today!
If you are overwhelmed with student loan debt and cannot pay it off, you should consider settling the debt, so you can finally move forward with your life. At the Law Office of Simon Goldenberg, PLLC, our legal team is experienced in negotiating debt settlements and, in many cases, we can obtain substantial reductions and payment plans with 0% interest. You should not continue to bear this burden, especially when knowledgeable legal representation is only a phone call away.
Get started on achieving debt relief today and contact our law office at (888) 301-0584 to schedule a risk-free consultation with our trusted debt relief attorney to learn more about how we can assist you.