Did you know that the average student will graduate with $35,000 in student loan debt this year? Most of these students will have a hard time paying off that debt. If you’re one of those students struggling with the weight of student loans, you’re not alone! Many graduates face serious student loan bills, frequent calls from collectors, and poor credit scores as a result of not paying student loans on time.
Clearly, a situation like this can make anyone feel helpless and hopeless. Plus, student loan debt is one of the biggest factors when it comes to delaying things like buying a home or even having kids. But there is some good news; There are a few ways to get on with your life and negotiate your student loan debt. However, doing that is not always easy. Here are some of our top tips to guide you:
The Federal Loan Correction:
You cannot negotiate a federal student loan. However, it is somewhat simpler to defer these loan payments, OR opt for something like an “income sensitive” presentation. Can you eliminate any of the actual amounts of federal debt you owe? No. Is there anything I can do if I haven’t repaid a federal student loan? Yes! You can negotiate a payment plan to lessen the charge.
How do you negotiate a good payment plan? Talk to the debt collector and find a plan that works for you, but keep in mind that you will have a hard time negotiating anything if your debt has been taken to court. The only way out of a lawsuit situation is with the help of an experienced attorney in your state, and you absolutely need it if a federal lender has sought to garnish your wages or access your bank account(s). ).
Private Loans: Be Caution Ahead:
Private lending territory is tricky. If your debt has not yet been sold to a collector, you may still have some bargaining power. However, most of the time, the discount you can get on a private loan is minimal. What happens if your debt has been sold to a collector? Well, you still have some bargaining power, and most collectors will offer you a straight deal. But it’s important to pay attention to the treatment you’re actually getting.
Does the collector offer you a legitimate discount or just waive interest and other fees that have accrued over the last five years? Would it have been better to just make those minimum payments and reduce your debt? Possibly! You would have to weigh the deal that comes your way. It’s also worth noting that a collector may offer you a deal, but you’ll have to pay that amount in full; You generally can’t pay on the spot if a collector offers you a bargain deal. Be very careful and ask questions!
Are you being sued?
If you’ve defaulted on a private student loan, there’s a good chance you’ll end up receiving some legal documents. In this case, a court may decide that you must pay back part of your loan, but it all depends on how much you earn and how much you owe. If you have been served, be sure to hire an attorney to help you out of this situation. You can usually get out of this type of debt, but it depends on a number of different factors. The best plan is to talk to a lawyer about your situation and what your options are.