Can Student Loans be Negotiated ?
Renita Vaughan
October 08, 2007
Student loans are secured loans that are supported by the federal government. In short, this gives lenders more tactics to collect funds and debtors less options to avoid them. The government is able to garnish wages without obtaining a legal judgment; it can withhold tax refunds, social security benefits, and other government aid; but most importantly, it makes these loans very difficult, if not close to impossible to have discharged through a bankruptcy. All of these factors make it very unnecessary for creditors to negotiate any settlement with these accounts.
Although I have seen some claims on the internet of student loans being successfully negotiated, I have yet to find any conclusive evidence. Additionally, I have not been able to find any type of negotiation company that will handle these types of loans. (This is not to say that one does not exist, it is just that I have yet to come across one) In fact, most major negotiation companies specifically point out that they can not accept student loans into a settlement program. This for me strongly supports the conclusion that these types of loans are very difficult to negotiate. After all, if there were a way to make money negotiating these accounts, there would already be 50-100 companies offering the service via internet.
On a side note, if student loan is indeed negotiable, due to the secured nature of the loans, collection companies at most would be willing to negotiate penalties and some interest, but the full balance with a good amount of interest would have to be paid.
I believe that the best option for dealing with extensive student loans is by consolidating. Loans can be extended for periods of 15 years or more, and by consolidating you can save around one percent on the interest rate. I would recommend speaking to a professional regarding your specific situation to see what kind of payment plan they can help you set up. Just like taxes, if not paid, student loans can haunt you for the rest of your life, so I believe the best thing you can do is begin to pay off those loans as soon as possible.
Further readings of college loan, student loans company , student car loans and college student loans.
Although I have seen some claims on the internet of student loans being successfully negotiated, I have yet to find any conclusive evidence. Additionally, I have not been able to find any type of negotiation company that will handle these types of loans. (This is not to say that one does not exist, it is just that I have yet to come across one) In fact, most major negotiation companies specifically point out that they can not accept student loans into a settlement program. This for me strongly supports the conclusion that these types of loans are very difficult to negotiate. After all, if there were a way to make money negotiating these accounts, there would already be 50-100 companies offering the service via internet.
On a side note, if student loan is indeed negotiable, due to the secured nature of the loans, collection companies at most would be willing to negotiate penalties and some interest, but the full balance with a good amount of interest would have to be paid.
I believe that the best option for dealing with extensive student loans is by consolidating. Loans can be extended for periods of 15 years or more, and by consolidating you can save around one percent on the interest rate. I would recommend speaking to a professional regarding your specific situation to see what kind of payment plan they can help you set up. Just like taxes, if not paid, student loans can haunt you for the rest of your life, so I believe the best thing you can do is begin to pay off those loans as soon as possible.
Further readings of college loan, student loans company , student car loans and college student loans.
Print
Email
