Education · February 22, 2022

Everything You Need to Know About Student Loan Settlement Program

When students get admitted to a university, they take loans for completing their college education. But it’s impossible to foresee the future. Factors like economic slowdown and vanishing jobs makes repaying student loan almost impossible. And recently, student loan debt has increased massively. In fact, most students were compelled to take more private student loans with higher interest rates. With the rising tuition fees, personal student loan debt has turned to crisis levels. In such cases, you can look into a student loans debt settlement program, wherein you get a student loan lawyer to fight for you and safeguard you against loan lenders. They also offer you legal advice and represent your needs and interests during lawsuits.

When Can You go for a Private Student Loan Settlement?

Today, settlement pertaining to defaulted private student loans has become commonplace. Such lenders do not possess the collection support that their federal counterparts have. As such, a private or personal loan holder can accept a student loan settlement in the following cases:

  • You don’t have many assets or income – Your loan holder will decide on the basis of your capability for repayment. In this case, you will need to demonstrate why it will not be possible to provide much money in the future. 
  • You have a robust legal defense – Note that private loan holders can sue you for repayment. And in the instance of your loan holder winning a court judgment, they can take money straight from your bank account. However, suppose you can prove in court that the limitations statute on your student loan has ended. In that case, you can prompt a dismissal or a debt settlement. 

Ways to getting Student Loan Settlement

Although you can settle student loans independently, it will help you immensely if you hire a more experienced negotiator. So, some ways to get a student loan settlement are as follows:

  • Reach out to the firm that has been in contact about your loan. Regarding defaulted student loans, there are many chances of it being a collection agency. And you must connect with them and discuss the different settlement options.
  • Hiring an attorney is yet another effective way to settle your student loans. And today, you can avail of a student loans debt settlement program and settle your debt for 55-60 cents on the dollar and without the requirement for bankruptcy. A student lawyer or an attorney specializes in debt settlement. So, if you end up getting sued, they will represent you through the trial for $500 plus the price of filing the answer. 
  • Consider working with a debt settlement company. So, if you are continuously making payments, the debt settlement companies will fund an account with your payments. After keeping aside sufficient money, the company will attempt to negotiate a settlement. However, remember to keep in mind that working with a debt settlement company will be risky. It is more so if your loans aren’t in default. A very few of these companies help in the successful settlement of these loans. Meanwhile, if you and your loan holder say yes to a settlement, then receive the offer in written form. And after paying the amount, ensure that you receive a paid-in-full receipt. 

Additionally, you can seek help with your loan debt by discussing repayment options. You can also take a brief payment pause, but consult with your servicer or lender first.

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