How To Settle Private Student Loans Informational

I have been able to negotiate private student loan payments with major private lenders such as Navient, NCT, Wells Fargo, KeyBank and Sallie Mae; and various smaller or more obscure lenders.

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I will ensure that your private student loan payments are made properly, with proper credit reporting from lenders.

Negotiating and tracking settlements is where people can get into real trouble trying to settle on their own or by hiring settlement companies that don’t focus on private student loan settlement negotiations.

I never charge upfront – my fees are paid when the contract is negotiated.

Beware of debt settlement companies that charge you a percentage of the total amount owed instead of savings – not only that, but this statistically comes out way more than my dollar amount; This means they have no incentive to save as much as possible and go the extra mile to maximize the amount you can save.

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Under their “percentage of total balance” model, the payment is the same whether the down payment is 40%, 50% or 60% – they are paid the same amount no matter how low your negotiated deal is.

For this reason, I consider the “total balance” payment model to be inferior to my performance based on the “savings percentage” model.

My strategies and tactics have been shaped over time – specific to specific lenders and for different situations at different points in the collection cycle.

For example, the process of dealing with a collection law firm is different from that of an in-house collection department, even if the debtor is the same.

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I have spent over a decade of my career interviewing debt collectors, collection attorneys, collection directors, managers, directors, bankers, private student loan servicers and more.

Thousands of difficult negotiation situations have provided me with a negotiation “toolbox” and a deep source of knowledge to rely on regarding borrower behavior and reading the lines during negotiations.

The disbursement of private student loans can vary greatly depending on the collection cycle, legal tactics, and potential forgiveness clauses used by different lenders.

The student loan industry is not as large as the credit card industry in terms of the agencies and lenders involved, so over time, in some of the private student loans I manage, I negotiate with many of the same companies. Repeat collection organization.

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I don’t forget that I only work for my clients and they only work for the lender, but when the deal comes through, interest accrues.

When loan holders contact me about active cases or recent subpoenas, I refer them to the top student loan attorneys in the country, many of whom I own.

However – unless you’re facing a legal situation like a subpoena or garnishment, you don’t need to hire a lawyer (and pay upfront fees) to handle your private student loans.

I’ve never been sued by a customer, and that’s not by accident – my unique approach minimizes risk while maximizing savings.

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It’s easy to spot a case a mile away if you know what to look for, and in cases where it’s possible, we simply play defense (usually in the form of a temporary payment plan) to avoid legal action while continuing to negotiate student loans. , with the aim of reducing the amount paid.

In some cases, I have been able to leverage my negotiating relationship to get debtors to remove the account from a legitimate collection agency and return it to a non-legitimate debt collection department.

Keep in mind that student loan debt settlement attorneys will limit themselves to a very small segment of the market if they only accept potential clients with active cases, so they will make excuses or sometimes use scare tactics as to why we need legal representation. Negotiate an agreement such as a private student loan settlement. Which happens without guilt.

It’s their business decision — which results in signing more clients than just those facing ongoing litigation — but not based on any legal requirement that they hire representation.

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A student loan attorney does nothing different than a non-attorney negotiator during the negotiation process unless you have a real legal background.

But, they will probably take full advantage of their exemption from the “no prepayment rule” by charging you in advance.

Don’t get me wrong – I love the student loan defense attorneys I know and see legal cases from them regularly.

If you have a subpoena or other matter that requires an attorney, I will help you find one or refer you to one of the many successful student loan attorneys I have met in the industry.

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I do not offer legal positions or legal advice. If you are served with a subpoena, I cannot help you – there is a separate legal process that must occur at that time and with any negotiation, and you need a skilled student loan attorney for that.

Fortunately, legal action is usually a last resort for creditors, and there are many opportunities to settle before that happens.

Assignment to a collection law firm or collection agency is somewhat general and the assignment itself does not imply legal status.

An offer from a collection law firm means the case will be closed in a few months or less if no agreement or payment plan is reached.

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Therefore, if you receive a letter or call from a collection law firm about a defaulted debt, it is important to act quickly.

If pursuing a debt settlement offer does not help you, I would not sign you up and suggest another strategy instead. The same applies if you are not in a position to pay the full amount.

The biggest problem with the “old school,” sales-oriented debt relief model that many companies use (and have used for decades) is that it causes people to sign up for what is not a way to pay off student loans.

The “old school” debt relief model involves saving for years with monthly deposits in hopes of eventually paying it off (usually directly to a loan servicing company, which takes a portion of each student loan payment from their payments) – and it doesn’t work. For larger accounts, where the student loan lender can be legally aggressive within 6-12 months of default or less.

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Large personal loan balances cannot be paid off through regular savings deposits from income and usually require access to funds, assets or any other cash the bank has already created during default.

You can use current/future income to help pay for the down payment later, but you’ll need some cash to pay when the deal closes.

I screen carefully and only accept those who fit my process. A good candidate should, among other things, have the funds to lock in a lump sum or schedule payments immediately after default – minimizing the risk of legal action, maximizing your savings.

A quick settlement after default, preferably a lump sum, causes credit scores to rise much faster than the inefficient “old school” credit relief model.

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That model, which runs for years with accounts delinquent and at risk of litigation, is why debt settlement is associated with permanent credit damage. However, this is not the case when a negotiated agreement is properly executed.

There are many misconceptions about debt settlement, but none are as widespread as the idea that it will destroy your credit forever. The “old school” debt relief companies I mentioned earlier are the reason for this idea.

Instead of real negotiators or certified financial advisors, those who call these traditional debt relief companies talk to a seller, and that seller has every incentive to get them to sign as quickly as possible.

Unfortunately, this has historically led to fraudulent sales that leave out the very important fact that accounts must be in default before any creditor can receive compensation.

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