Is it possible to negotiate student loans? 

It depends... There are basically two types of student loans:

• Government Loans
• Private Loans

There are several types of government loans, but for the most part, these cannot be negotiated.

That doesn't mean you shouldn't try! 

Besides having several repayment options, it may be possible to offer a reduced LUMP SUM PAYOFF of 50%-75% of your balance and pay off your student loan at a reduced amount.

Since most deferment or repayment plans are based on your financial situation, you should gather as much information about yourself as possible before making the calls. In order to  have a chance of negotiating a lower lump sum payoff, you must show that you are in struggling financially.

Start with a basic budget that shows your assets vs. your liabilities.

Again, if you do not have approximately 50% -75% of the balance due, you are probably wasting your time trying to negotiate a federal student loan.  However, budgeting will help you make a plan to save for that negotiation in the future.

You may be able to negotiate a PRIVATE student loan for less!

If you have a PRIVATE STUDENT LOAN from a bank, credit union or other private lending source, you have a VERY GOOD CHANCE of negotiating the loan!

Again, gather all of your financial information BEFORE you make the call.  When you call, explain your HARDSHIP and SITUATION and then ask the agent how much they would be able to reduce the balance if you were to pay in a lump sum right away.

LET THEM GIVE THE NUMBER FIRST!  It may be a lot less than you were willing to pay, so don't offer any amount!

Debt negotiation is not always easy for first timers, so you may want to get some advice or counseling before your call.

If you are successful in negotiating a lower amount, MAKE SURE TO GET IT IN WRITING!

Too many people have sent payments or authorized a check-by-phone debit after speaking with an agent and find out later that the company had NO KNOWLEDGE OF THE CONVERSATION!

Debt negotiation takes a lot of time and patience. 

If you would like help, click here for a FREE REVEIW.

The total amount of all student loan debt is almost $1 TRILLION dollars! That's an average of about $25,000 per loan or about 40 Million loans!  With our economy in a recession for the last few years, many of these loans are in default.

The Student Loan Forgiveness Act of 2012 or H.R. 4170, has been introduced in congress by Rep. Hansen Clark.  If this passes, how will it affect you and your student loan?

 BANKRUPTCY WILL NOT HELP!

The bill, introduced in March would create a new "10-10 standard" for student loan forgiveness:

• If you make payments equal to 10% of your discretionary income (take home pay) for 10 years, the remaining balance of your federal (not private) student loan would be forgiven.
• If you have been making payments on your federal student loans, your repayment period would likely be shorter than 10 years.  In other words, the amount you have already paid on your student loans over the past 10 years would be credited toward meeting the "10-10 standard".
• The bill would also cap interest rates on federal student loans at 3.4%
• The bill would allow private student loans to be converted to federal Direct Loans, and then enrolling their new federal loans into the 10/10 program.
• If you enter a public service profession like teaching, firefighting, law enforcement, etc., you would qualify for a 5 year Public Service Loan Forgiveness Program!

If you currently have a Federal Student Loan, there is little you can do but keep paying.  However, if you are unemployed or have a reasonable financial hardship, you may qualify for a DEFERMENT.

If you have a PRIVATELY FUNDED STUDENT LOAN, you may qualify for a settlement or forgivenss of 50% or more. 

To learn more, CLICK HERE.