If you have recently defaulted on your federal student loans, there are some options available to you. Defaulting on any loan can make you feel insecure about your finances, but in this economy it can be hard to make your payments on time. There are so many people that are in this same boat right now. You should still be trying to find a way to make these payments. If you know for sure you will not be able to make the payments, you should be looking into some sort of negotiations with your creditors to get this debt paid down. You need to start settling debt with the collection agencies as soon as you can.
In this article we will go over some of the things you can do to work with the collections agencies to begin settling debt from federal student loans.
First, talk to your creditors about waiving the collection charges. These collection charges can range from 20 to 25 percent of your monthly bill. This can add up in a hurry. If your student loans are 0 per month, you are looking at a minimum collection charge every single month. If you can settle with them for a lump sum, the collection agency will usually allow you to only pay the principle amount you owe, plus any accrued interest that has not been paid.
Another thing you can do to settle your debt on your federal student loans is to ask for a reduction in the total amount you owe. It can be as simple asking for just a 10 percent reduction. That is including the interest accrued and not paid, of course. A collection agency will usually accept this reduction but it all depends on your individual situation. Not everyone will be able to get a reduction in the amount owed to a collection agency.
Finally, once you do get a settlement offer, make sure you get it in writing and reviewed by a lawyer. This is a crucial step in settling your student loan debt. If you fail to get a settlement in writing, the collection agency can do pretty much whatever they want with no legal liabilities.
In order for you to get a successful settlement with a collection agency, you should not be able to afford to pay the loan. If you are making enough money to actually pay the loan, it's very unlikely that you will be able to reach a settlement.
No comments:
Post a Comment