student loan settlement debt relief can help resolve your debt problems.
Your financial situation is different from someone else. The student loan settlement debt relief service that works for someone may not be the best choice for someone else. You should take the time to understand all the debt relief options available to you to find the best solution for your needs and goals.
What Is Student Loan Settlement?
Is Student Loan Settlement Possible?
However there is no legal obligation for your lender to negotiate. And, unlike other type of unsecured debts, student loans, with few exceptions, do not qualify for being discharged in a personal bankruptcy judgement. This means that your loan lender has less incentive to negotiate a settlement with you.
Reasons Private Student Loan Settlement
Reasons Federal Student Loan Settlement
Is It A Real Possibility For You?
But some people might be in default and have other finances pending, like an inheritance or a gift or a loan from a family member. You may also find in your negotiation with the student loan holder that large installment repayments may be accepted as an alternative.
The decision to negotiate a settlement of your student loan is unique to each person’s financial situation. You have to determine the outstanding balance on your student loan, the range of settlement discounts that can be accepted by the holder of your loan and whether you have the financial budget to negotiate an acceptable settlement offer.[/vc_column_text][/vc_row]
Settling Private Student Loan
Settling Federal Student Loan
How Much Can You Save?
Remember no debt collector, be it federal government or a private company, will allow you to settle your loan for less if you have at least a reasonable chance of paying it back. You need to demonstrate a serious, long-term financial hardship, where it is apparent to both parties that you will not be able to pay the outstanding balance on the student loan.
Private student loan debt settlement amounts vary greatly. You student loan holder may not accept less than 80% of the total owed, whereas other lenders will take less than 50%.
Federal student loan savings are not nearly as large. The Department of Education provides its loan collection agencies with specific guidelines for how much of the debt is acceptable to waive. You may receive one of the following:
- 100% of collection costs waived.
- 50% of interest owed waived.
- 10% of principal and interest waived.
Whether you settle federal or private student loans, you may owe income taxes on the amount that you do not pay and is forgiven.
If you and your loan holder agree to a settlement, get the offer in writing. Once you have paid the amount as required, make sure you receive a paid-in-full receipt. You will want to hang on to that in case questions about your debt arise in the future.