Are you considering consolidating your student loan debts into one larger payment? If so, you must complete several steps to make this process successful. You may even be wondering how to negotiate with your private lenders. There are various Private Student Loan Settlement options that a student with student loans can choose from when trying to negotiate their student loan debt.
Can you make a settlement with student loans?
Before you begin contacting your lender
You must know the process. Most private lenders do not offer the option of making a settlement with student loans. Personal student loan debt tends to be filed and collected according to the debt accrued and the length of time since graduation. If you wish to pursue the option of making a settlement with student loans, there are a few things you should know. These options include a bankruptcy filing, consolidating with a co-signer, or paying in full. Depending on your situation and budget, these different options will be explained further in this article.
A bankruptcy filing should never be considered an option when making a private student loan debt settlement. Bankruptcy filings are often the last resort of those who have exhausted all other options and cannot seem to find a way to pay off their debt. Filing bankruptcy without first consulting with an attorney or taking the necessary time to research the process can be pretty risky. You must understand the consequences of going through with such a filing.
Consolidating your debt
As you may be aware, consolidating your debt with a private lender can be a great help. In some cases, doing this can help to improve your credit score. In other cases, it can cause your credit score to decrease. You must get this type of information before signing any papers.
One of the main reasons you would want to file for bankruptcy is that you are probably suffering from severe financial hardship. You probably realize this is true, but have you tried to determine why you have been given bad credit? Perhaps you have lost your job and have had to take out a Direct Loan. These types of loans require you to make regular monthly payments, which carry interest. When you apply for a private student loan, you may not even be considered for a loan if you do not have enough money for the total amount. A Private Student Loan is not federally funded and does not carry the same federal benefits as a Government Student Loan.
Disability benefits or income protection
If you have experienced a near-death situation, you may have to file for disability benefits or income protection. These programs are available through the Canada Revenue Agency. While this is not the only reason you could qualify to eliminate your debt, it is a good reason. Disability and income protection are granted when you have experienced a major medical problem or experienced a significant change in your life, like losing your job or having a child. If you have tried all the methods listed above and can’t seem to pay off your credit card debt, then perhaps bankruptcy is the best option for you. The benefits are immediate, and you will be free of your debt immediately. A bankruptcy filing will show up on your credit report and will stay there for seven years. Once it has been removed, your credit card debt can be quickly restored by getting approved for another credit card or finding a low-interest loan.
The last question to ask yourself when asking, “Can you make a settlement with student loans?” is whether or not you will be able to save money for more info Read More. Student loan debt tends to accumulate quickly, and you can end up owing thousands of dollars just within the first couple of years. You must start planning for your future now, including saving money for the “what if” scenarios that could arise