Private student loans are not unlike credit cards. If you find that you can’t pay your private student loan, your loan will go into default and you will need to find a way how to get out of default. According to Motley Fool, 43 million Americans collectively owe $1.3 trillion in student loans. Students who take out federal student loans have options if they can’t pay their debt, such as loan rehabilitation. If consumers with private student loan can’t pay their loans, they can’t rely on federal student loan options such as reasonable payment plans, deferments, forbearances or hardship exemptions.
How To Get Out Of Default On Student Loans
Private student loan creditors like National Collegiate Student Loan Trust, Wells Fargo, Discover and Key Bank will come after you for private student loan debt, even if you find that you cannot pay back your debt. They have vast resources at their fingertips and will use them to sue you if your loan goes into default. So is there a way to fight back against a private student loan lawsuit?
Get Out Of Default On Private Student Loans
Yes. I have successfully helped my clients get out of default on their private student loans. Let me give you an example. Recently my client was sued by a large, national owner of student loan debt. She called me and was very upset that the debt collectors kept calling. My client was very worried that she was hurting her parent’s credit, since they were co-signers on her loan. Defaulting on your student loan can cause serious damage to your credit score. My client owed $43,000 in private student loans. She was losing sleep, stressed out, and wanted to know if there was a way to get her loan out of default.
Over the years, I have built relationships with debt owners, which puts me in a unique position when it comes to negotiating a debt settlement with them. Debt owners get a bad rap for going after those who default on loans, but they are in the business of making money. Many are willing to work with those who are in default. They would rather not go to the expense and lengthy process of suing you.
I was able to negotiate a settlement for my client for $25,200 payable over 72 months. Her student loan debt was reduced by $17,800. My client saved 41% of her original balance due. She was very relieved that there was a solution to her student loan default. Today, she is making regular payments, her credit score is on the mend and she has peace of mind that her parents will not be in jeopardy due to her student loan default.
Daniel R. Gamez, an attorney focusing exclusively in debt relief, is licensed to practice in all state and federal courts in California and Texas. Mr. Gamez owns and operates the Gamez Law Firm in San Diego, CA. For more information, please contact Daniel Gamez at 858-217-5051, firstname.lastname@example.org or use our online contact form. Stay updated with the latest debt relief tips by following on Facebook and Twitter!